- EUR / GBP remains under pressure amid calm Asian session.
- Comments from US Treasury Secretary Yellen, Brexit headlines weigh on market sentiment.
- German factory orders expected, risk catalysts guard the driver’s seat.
EUR / GBP remains depressed, down 0.05% around 0.8585, in the middle of Monday’s Asian session. US President Joe Biden’s Europe hopes for breaking the Brexit deadlock join comments from US Treasury Secretary Janet Yellen to put downward pressure on risk appetite recently, as well as on the prices of the pair.
Uncertainty over the UK’s full unlock on June 21, due to the Indian variant of the covid, joined the gains of the European currency (euro) on the lower US dollar, mainly due to the negative surprise of the US jobs report, to confuse EUR / GBP traders on Friday. The gossip surrounding the ECB’s rejection of easy monetary policy versus the BOE’s favor for tapering could also be a challenge for traders in the pair.
The Times recently ran the news suggesting US President Joe Biden’s interference in the Brexit deadlock. The news said: “President Biden will warn Boris Johnson not to back down on the Brexit deal in Northern Ireland when they first meet at the G7 summit this week.”
On the flip side, US Treasury Secretary Yellen spoke at the end of the G7 and mentioned that the rate hike was good for the Fed, fueling concerns about the rate hike and the mood of risk. .
Elsewhere, discussions of UK Treasury Secretary Lizz Truss’ comments on China’s pernicious business misconduct, as well as the US Secretary of State’s vow to hold China accountable for the origin of the covid, weigh heavily. also on the market sentiment.
Amid those games, S&P 500 futures are down 0.10% during the day as 10-year US Treasury yields gain one basis point to 1.57% at time of release.
Afterwards, German factory orders for April, expected at 1.0% vs. 3.0% previously, will decorate the calendar, but sentiment-related stocks will become the key to watch for further impetus.
A descending triangle between 0.8565 and 0.8630 limits short-term EUR / GBP movements.