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EUR/GBP stays capped below 0.8550 amid risk-off caution

The pair slid to 0.8536 on Monday and traded with EUR sentiment pressured by fading hopes for a quick Iran war resolution and firmer oil prices.

Reported · Written up by our desk · Major Pairs

FXStreet reports EUR/GBP extended losses for a second consecutive session on Tuesday, holding below 0.8550 after falling to two-week lows of 0.8536 on Monday.

With no major UK or Eurozone macro releases due, the outlet says geopolitics and energy markets were the main drivers, as hopes for a swift end to Iran’s war wane and oil prices climb, weighing on the euro.

FXStreet also cites Rabobank strategists warning that the breakdown of the US-Iran peace agreement implies downside growth risks for the Eurozone and upside inflation concerns.

On the chart, initial support is seen near 0.8530, and below that around 0.8510, while a move back above 0.8550 would be needed to shift price action toward recent highs near 0.8580.

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