EUR/GBP Keep Modest Gains Above 0.9100

The EUR/GBP gained some momentum on Monday and built on a good bounce last week with the common currency receiving support from the European Recovery Fund Agreement.

The EUR/GBP shade some gains around 20 points during the European session, just above 0.9100.

the pair built on a good bounce last week from a psychological level of 0.9000 and gained some follow-up on the first day of the week, also common currency remained supported by optimism about the historic agreement on the European Recovery Fund.

The euro also got additional support after the release of the German IFO business climate index, which came at 90.5 in July, compared to an expected 89.3 and 86.2 earlier. This comes after the improvement of the Eurozone PMI on Friday.

On the other hand, the British pound benefitted from a broad-based US dollar weakness and seemed rather unaffected by renewed fears of a no-deal Brexit. A stronger GBP turned out to be a key factor that kept a lid on any further gains for the EUR/GBP cross near the 0.9135-40 area.