EUR/USD rises back above 1.1400 after UK Parliament votes down May’s Brexit deal

• EUR/USD trims losses as GPB/USD rises more than 200 pips after Brexit vote. 
• Euro benefits from cable’s rally but EUR/GBP drops sharply. 

The EUR/USD pair recovered ground from weekly lows and rose back above 1.1400. The euro climbed from 1.1381 to 1.1415 boosted by the rally of the pound versus the greenback. 

Near the end of the session, EUR/USD stands at 1.1405, about to post a 50 pip daily loss. Price dropped back below the 20-day moving average and also under the key 1.1450 level. So far the recovery from the lows has been limited. The euro needs to regain 1.1450 to strengthen again. 

At the same time EUR/USD trimmed losses, EUR/GBP reversed sharply falling from 0.8980 (daily high) to 0.8863 in a few minutes, reaching the lowest since December 3. 

Brexit and UK political headlines are likely to continue to be a key driver of price action. Opposition leader, Jeremy Corbyn called for a vote of no confidence in May’s government. The vote will take place on Wednesday. Volatility on Pound’s crosses is likely to continue at extreme levels. 

EUR/USD Levels