12 Feb 2015
EUR/GBP: Pound gains post BOE inflation report
FXStreet (Mumbai) - EUR/GBP dropped from close to fresh session highs as the pound gained some momentum after BOE inflation report revealed that the Central bank downgraded near term inflation expectations but revised up slightly its medium-term inflation outlook.
EUR/GBP slips from 0.7449 levels post BOE Inflation Report
The EUR/GBP pair trades lower by -0.30% at 0.7416 levels, having slipped from session highs post the inflation report. EUR/GBP slipped in an immediate reaction after the Bank of England (BoE) slashed near-term inflation seeing CPI turning negative temporarily in Spring. Medium-term inflation, however, overshoots target in the second half of 2017, the BoE Inflation Report forecast revealed today, raising expectations of BOE’s rate lift-off this year.
However, BOE Carney said in an open letter that the path to policy normalization could be even longer and more gradual. Carney also admitted the stands ready to expand the current volume of quantitative easing (QE), or cut the base rate further if low inflation persists.
EUR/GBP Levels to consider
To the upside, the next resistance is located at 0.7460 and above which it could extend gains to at 0.7499 levels. To the downside immediate support might be located at 0.7400 and below that at 0.7383 levels.
EUR/GBP slips from 0.7449 levels post BOE Inflation Report
The EUR/GBP pair trades lower by -0.30% at 0.7416 levels, having slipped from session highs post the inflation report. EUR/GBP slipped in an immediate reaction after the Bank of England (BoE) slashed near-term inflation seeing CPI turning negative temporarily in Spring. Medium-term inflation, however, overshoots target in the second half of 2017, the BoE Inflation Report forecast revealed today, raising expectations of BOE’s rate lift-off this year.
However, BOE Carney said in an open letter that the path to policy normalization could be even longer and more gradual. Carney also admitted the stands ready to expand the current volume of quantitative easing (QE), or cut the base rate further if low inflation persists.
EUR/GBP Levels to consider
To the upside, the next resistance is located at 0.7460 and above which it could extend gains to at 0.7499 levels. To the downside immediate support might be located at 0.7400 and below that at 0.7383 levels.