EUR/GBP steady at 0.8350 in an 80-pip session amid a risk-off market mood and ECB/BoE speaking

• The EUR/GBP is 0.39% up in the week.
• A risk-off market mood caused a fluctuation In the pair, benefitting the low-yielder euro.
• EUR/GBP is neutral biased, even though the DMAs reside above the spot price.

On Thursday, The EUR/GBP climbs during the day, so far 0.12% amid Russia’s invasion of Ukraine, spurring a risk-off market mood. At the time of writing, the EUR/GBP is trading at 0.8355, after reaching a daily high, precisely at the 50-day moving average at 0.8378.

During the overnight session for North American traders, the EUR/GBP cross-currency broke below February 23 daily low at 0.8325, a signal of bearishness in the markets. Then the pair pressured towards February 21 and 22, daily lows around 0.8309 short of the figure, a zone of intense buying pressure, as witnessed by the EUR/GBP reaction, jumping almost 80-pips towards the daily high at 0.8380.

In the meantime, on Thursday, the EU and UK dockets witnessed ECB and Bank of England’s (BoE) officials speaking. Regarding ECB’s speaking, Stoumaras member of the ECB, mentioned that the APP would remain until the end of 2022, while Holzman commented that the Ukraine conflict would delay the end of QE. Regarding inflation, ECB Schnabel said that it is higher than expected and broadening but emphasized it would tame under 2% in the year.

In the meantime, BoE member Ben Broadbent said that “QT is not intended to be an active monetary policy instrument, the bank reate will be.”

Therefore, as noted by central bank speaking, it appears that some ECB hawks are easing their hawkish tone amid the Ukraine conflict, so the shared currency could weaken in the near term, influenced by Ukraine developments. Contrary, the Bank of England (BoE) has pushed back against aggressive hiking rates, something worth noting, as Bailey pushed back on Wednesday, saying there are two-sided risks to the inflation forecast.

EUR/GBP Price Forecast: Technical outlook

The EUR/GBP price action in the last three days, as depicted by the daily chart, is not clear. However, the EUR/GBP daily moving averages (DMAs) above the exchange rate could suggest it is downward biased, but at the moment is neutral.

Upwards, the EUR/GBP resistance levels would be the 50-DMA at 0.8378. Breach of the latter would open the door towards 0.8400, followed by the 100-DMA at 0.8428. On the flip side, February 23 daily high at 0.8354 would be the first line of defense for EUR/GBP bulls, followed by 0.8309, and then February 3 daily low at 0.8284.