EUR/GBP sinks amid weaker euro, Sunak effect

The euro has extended its losses on Friday after failing to regain 0.8650. Sunak’s appointment as British PM saved the British pound. It is commonly perceived that The GBP remains, supported by the Sunak effect.

The euro depreciated against the pound for the fourth consecutive day on Friday, to test the support area at 0.8570 after having failed to breach the 0.8650 resistance area earlier today.

The sterling has performed moderately across the board this week, assisted by the positive impact of the appointment of Rishi Sunak becoming as UK’s Prime minister. Sunak’s commitment to restoring economic stability has eased the crisis caused by Liz Truss’ economic plan and has offered a good respite to the GBP.


In the absence of relevant macroeconomic releases in the UK, the Eurozone calendar has failed to provide support to the euro. The preliminary German GDP showed that the first economy of the eurozone has dodged recession, although CPI figures have confirmed that consumer inflation continues growing out of control.