EUR/GBP Clings to Modest Gains Near Weekly Tops

EUR / GBP rallied in the European session and was seen hovering near weekly highs just below the mid of 0.9000.

The pair reversed the decline to the 0.9010 area and turned to the positive side for the second consecutive session on Wednesday. The rise was due to the weakening of the British Pound against its European counterpart and helped the EUR / GBP pair to recover from the 0.8980 support area, the lowest level in 3 weeks reached on Friday.

Bulls of Sterling Pound remained on the defensive after the UK PMI, which adjusted slightly to 56.5 for July compared to expectations of 56.6.

The dollar remained low near two-year lows amid fears that the numbers of COVID-19 cases could continue to increase, which would undermine the recovery of the US economy, alongside the impasse in the next round of US fiscal stimulus measures.