EUR/GBP seeking volatility ahead of EU, UK PMIs

• Markit PMIs for both EUR and GBP early in London.
• Brexit hostilities continue to flare up.

EUR/GBP is trading near 0.8740 ahead of London markets, at the bottom of the range established early in Tokyo trading.

Both the Euro and the Sterling have Markit Manufacturing PMI data today, with Italy, France, and Germany PMIs from 08:45 GMT to 08:55, followed by Greece and general Eurozone PMIs at 09:00, with UK PMIs shortly after at 09:30. 

Brexit continues to plague organizations on both sides of the English Channel, with Theresa May beginning to lose support from her governing Tory Conservative party, with some backbenchers openly calling for a no-confidence vote in Prime Minister May's leadership following the announcement that May intends to release Brexit data when it becomes available. This move follows closely on the heels of a Brexit document being leaked recently that showcases the possible negative economic repercussions should the UK leave the European Union without establishing trade agreements with the EU first. Currency markets were quick to shrug off the leaked document, but May is still left to find the balance between her hardline Conservative peers, the European Union, and the UK voting public. Across the Channel, EU leaders came together to propose safeguards, against the UK following Brexit during a presentation to EU27 member states last week. The proposed safeguards are essentially mechanisms to prevent the UK from undermining the competitiveness of European companies across the continent by using tax breaks and deregulation. The preemptive strike aimed at policing the UK after it finalizes leaving the EU adds tension to an already strenuous situation.

EUR/GBP Technicals

Daily charts have formed a descending pennant, and a decided break to either side could establish the start of a new major trend, while intraday traders will be looking for a break of either 0.8740 or 0.8755 to get the London session kicked off.

Today's pivot points:
R2: 0.8842
R1: 0.8793
PP: 0.8767
S1: 0.8719
S2: 0.8693