EUR/GBP stable after key upside closing price, terror attack and ahead of UK elections

EUR/GBP is relatively stable in the open today, despite the atrocities from the weekend's latest terror attack in the UK. 

This is a key week for the cross and Sterling in general with the June 8th elections still planned to go ahead despite London's second terror attack in as little as just over two months. More here: London Bridge terror attack: safe havens and ongoing terrorism

Recent polls:

Meanwhile, the focus is quickly back to the UK elections and the latest polls continue to indicate a hung parliament cannot be ruled out; more here.

Overall, Sterling continues to trade heavily against the euro. "It fell on the cross for the sixth consecutive week.  The euro look to be headed into the GBP0.8800-GBP0.8850 area that marked the highs in mid-January and mid-March," noted analysts at Brown Brothers Harriman. With the European political climate settled for the time being ahead of the German elections later this year, the euro has found traction on the Macron victory and with the prospects of a more hawkish ECB in time to come. 

EUR/USD outlook:

Analysts at Brown Brothers Harriman note the recent price action in the euro vs the dollar and offered their analyses and outlook for the single currency: "The euro appreciated for the sixth week of the past eight.  Nearly three-quarters of the 0.7% gain on the week were scored on the back of the disappointing US jobs report.  Before the weekend, it posted its highest close since last September, as works its way closer to the spike high last November ($1.13).  The strength of the close warns of risk of a gap higher opening in Asia on June 5. Given the proximity of $1.1300, current volatility, and momentum, an upside break cannot be ruled out.  A break of $1.1300 could signal a move to $1.1400-$1.1425."  

EUR/GBP levels:

Having recently cleared and close above 0.8751, the previous high, the next key target to the upside is 0.8790 March high and potential to the 0.8852 January high. To the downside, 0.8700/20, 0.8650, 0.8601 and 0.8546 are key support areas. "Below the 55-day ma will target the 18th May low, which guards the 0.8383 May low and failure here will retarget key support at .8334/04," suggested analysts at Commerzbank.