EUR/GBP holds on above 0.8600, looks to Brussels
- The Sterling remains cautious ahead of the Summit in Brussels.
- Brexit will be on top of the agenda later on Wednesday.
- ECB event expected on the dovish side today.
Both the Sterling and the shared currency are trading on a cautious tone today ahead of key events, with EUR/GBP still navigating above the 0.8600 handle.
EUR/GBP focused on Summit, ECB
The European cross exchanges gains with losses in the middle of the week following five consecutive daily advances amidst rising cautiousness among investors, with the ECB and Brexit in centre stage.
In fact, the ECB will hold its monthly gathering later today and consensus expects the central bank to deliver a somewhat dovish message with the TLTROs and the likeliness of a tiered deposit rate system in the core of the debate.
On the Brexit side, the European leaders gathered in Brussels with discuss today another extension of Article 50, most likely for an extra year according to recent comments from Donald Tusk, Head of the European Council.
In the data space and earlier in the session, UK Industrial Production and Manufacturing Production expanded more than expected during February, while the trade deficit shrunk a tad during the same period.
EUR/GBP key levels
The cross is losing 0.03% at 0.8623 and faces the next support at 0.8571 (21-day SMA) seconded by 0.8502 (low Apr.3) and then 0.8483 (low Mar.27). On the upside, a break above 0.8651 (high Apr.9) would open the door to 0.8722 (high Mar.21) and finally 0.8826 (200-day SMA).