It's been a solid morning for the pair so far 31 Jan
Every month I highlight the BUBA buying of EURGBP (c. EUR 3bln) for the UK's EU membership fees/contributions and it's been no different over the past few days.
It all used to be done on last day but the Bundesbank ( BUBA) now carry it out over a period of days if market suits. No coincidence therefore that we've found some good demand/support around 0.8770 in past sessions that I've also been highlighting. They can soak up a few euros on the bid as well as go out a take the offers, hence the spikes.
Earlier in the EURGBP orders post I suggested demand notable and said we couldn't rule out further month-end buying even if mostly done already.
Well, from flat-lining between 0.8760-80 we've now posted 0.8816 in steady fashion helped by a few stops triggered above 0.8785 and 0.8800. That in turn has helped push GBPUSD down through 1.4150 demand/support to post 1.4126 lows.
Currently running out of steam again at 0.8801 with GBPUSD rallying to 1.4145 but struggling to get back above 1.4150 and now 1.4137
Part month-end impact, part GBP sellers returning generally with Brexit/May concerns never too far away.
Mirror mirror on the wall. Again.
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