Rising Brent crude near $83.00 and Middle East tensions pressure the Euro, pushing EUR/GBP toward multi-day lows.
The Euro extended losses against the British Pound on Monday, with EUR/GBP testing Friday’s low of 0.8560. Higher oil prices, driven by reduced traffic in the Strait of Hormuz and ongoing Middle East uncertainty, added strain to the Eurozone’s oil-dependent economies.
Brent crude climbed back near $83.00, roughly 6.5% above last week’s lows. While Iran and the U.S. signaled indirect negotiations, confusion over shipping routes and conditions for reopening the Strait kept markets on edge.
Analysts at Rabobank maintained a bullish view on EUR/GBP, favoring purchases near 0.8550. A break above 0.8588 could signal further upside, they noted, citing steady Bank of England policy expectations and pre-budget jitters in the UK.