Chicago 12, Melborne City, USA

EUR / GBP Set for Bullish Continuation as UK Political Tensions Rise

The EUR / GBP pair resumed a mild bullish tone ahead of the European session on Monday, tapping the 0.8630 top. However, this bullish traction is resisted by the risk-off sentiment emanating from Brexit and an attempted rebound by the US dollar.

On Monday, British policymakers in the House of Commons passed a vote in favor of the Northern Ireland Protocol (NIP) Bill. Although still a long from actually getting signed into law, the European Union (EU) has warned about the effect it could have on trade, spooking GBP / USD traders.

Commenting on the latest with the NIP Bill, Reuters noted:

“Despite some fierce criticism, lawmakers voted 295 to 221 in favor of the Northern Ireland Protocol Bill, which would unilaterally overturn part of Britain’s divorce deal from the EU agreed in 2020. The bill now proceeds to line-by-line scrutiny.”

Local reports claim the Brexit move is a ploy by the Conservative party to defend UK Prime Minister (PM) Boris Johnson’s seat following backlash from the “Partygate” scandal and the defeat of the party in two recent parliamentary by-elections.

In other news, the US Dollar Index (DXY), which tracks the dollar’s performance against a basket of currencies, tapped the 104.00 mark this morning on stronger US Treasury yields after slumping to an eleven-day low. As of writing, the 10-year Treasury yields dropped 1.9 basis points (bps) to 3.17%. The benchmark US bond coupons also rallied consecutively over the last two sessions.

Factors Driving the EUR / GBP Trading Dynamics Today

Market participants will focus on comments from the Bank of England’s (BOE) Deputy Governor for Financial Stability, Sir Jon Cunliffe, and the European Central Bank (ECB) Governor Christine Lagarde over the coming hours. This and updates from the UK political space and Brexit should drive market dynamics for the EUR / GBP in the near term.

You can purchase Lucky Block here. Buy LBlock

Share with other traders!

My name is Lawrence. I am one of the most famous forex trading schools. The purpose of creating this project is not only to give working advice on the Forex market, but also to warn beginners from fraudulent projects. Here we publish reviews of all Forex training scam projects, and professionally train those who have just decided to enter this niche.

    Leave feedback about this

    • Quality
    • Price
    • Service


    Add Field


    Add Field
    Choose Image
    Choose Video