Euro Edges Higher Against Pound as Risk Appetite Improves

Key Moments

EUR/GBP Supported by Risk-On Mood and ECB Rhetoric

The Euro (EUR) has been gaining ground against the British Pound (GBP) on Monday, with EUR/GBP buyers driving the pair toward one-week highs in the 0.8645 region. A brighter tone in global risk sentiment, following news of a peace deal between the US and Iran, together with firm rhetoric from European Central Bank (ECB) policymakers, has underpinned the single currency.

Market mood strengthened after reports that Washington and Tehran had signed a memorandum of understanding aimed at ending the war in Iran and reopening the Strait of Hormuz. In response, oil prices dropped to their lowest levels in three months, offering some relief to Eurozone economies sensitive to energy costs.

In parallel, comments from ECB officials Martins Kazaks and Joachim Nagel have highlighted ongoing concerns about inflationary pressures. Their hawkish tone has reinforced expectations that monetary policy could remain tight, lending additional support to the Euro.

Bank of England Decision in Focus

In the United Kingdom, attention is turning to the Bank of England (BoE), which is scheduled to announce its monetary policy decision later this week. Market participants will scrutinize the vote breakdown and the accompanying minutes for further insight into the BoE’s forward guidance. However, based on current expectations, additional monetary tightening is not anticipated in the near term.

Technical View: Signs of a Potential Base Around 0.8620

EUR/GBP is trading just above 0.8640, maintaining a mildly constructive short-term bias as it lingers below the upper boundary of last week’s range. The higher low established last week, combined with Monday’s upward movement, indicates that the pair may be carving out a base around the 0.8620 zone.

On the 4-hour charts, momentum indicators have shifted into positive territory. The Relative Strength Index (RSI) is approaching 60, while the Moving Average Convergence Divergence (MACD) has moved above the zero line. These readings imply a modest recovery phase rather than a strong bullish breakout.

For buyers, the immediate technical hurdle sits at the June 11 high of 0.8644. Above that, the June 4 and 5 peaks in the 0.8655-0.8660 band represent the next resistance cluster. A sustained move through these levels would strengthen the case for a bullish reversal and open the path toward the late May high near 0.8680.

On the downside, initial support is located in the 0.8620 region, an area that has repeatedly contained selling pressure in May and June. This zone also protects the year-to-date low at 0.8612, making it a critical level for the current constructive outlook.

(The technical analysis of this story was written with the help of an AI tool.)

Euro Performance Against Major Currencies Today

The table below shows the percentage change of the Euro (EUR) against major currencies today. According to this snapshot, the Euro has been strongest versus the US Dollar.

The heat map above shows percentage changes of major currencies relative to one another. The base currency is listed in the left-hand column, and the quote currency in the top row. For instance, selecting the Euro from the left column and moving horizontally to the US Dollar cell provides the percentage change for EUR (base)/USD (quote).