EUR/GBP clings to gains above 0.8600, focus on Brexit

• The cross stays sidelined around the 0.8600 area.
• EU,UK agreed to delay Article 50 to October 31.
• PM May will address the House of Commons later today.

No significant news around the British Pound or the single currency today leaves the door open for EUR/GBP to extend the consolidative theme around the key 0.8600 handle.

EUR/GBP attention shifts to May, Brexit

The European cross met decent contention in the 0.8590 region on Thursday following the dovish message from the ECB event, recovering ground lost later after the EUR regained momentum in the wake to the FOMC minutes.

In the meantime, GBP stays apathetic and looks to the upcoming speech of PM Theresa May at the House of Commons after the EU and the UK agreed on an extension of Article 50 to October 31, although May reiterated that the UK will look to leave the European Union as soon as possible.

Earlier in the session, and in the data space, final German inflation figures for the month of March matched the preliminary readings, showing consumer prices rose 1.3% from a year earlier and 0.4% on a monthly basis.

EUR/GBP key levels

The cross is advancing 0.06% at 0.8615 and faces the next hurdle at 0.8651 (high Apr.9) followed by 0.8722 (high Mar.21) and finally 0.8825 (200-day SMA). On the downside, a break below 0.8577 (21-day SMA) would expose 0.8502 (low Apr.3) and then 0.8483 (low Mar.27).