10 Jul 2013
EUR/GBP eyes 0.8600 handle
FXstreet.com (London) - EUR/GBP opened the European session below 0.8600 handle.
EUR/GBP reached 0.8671 highs yesterday and has since lost ground over NA and Asia trading. German CPI came in line this morning at 1.8%. The pair will await movements in the EUR/USD and FOMC minutes are key today. TD Securities research teams said the minutes from the FOMC 18-19 June meeting may come across as more hawkish than the Fed wants to see, judging from the steep +40bp move higher in Treasury yields since the June meeting. But Bernanke is speaking two hours later and is expected to massage the message with a more dovish tone, they said. This may limit the pair’s topside.
EUR/GBP Upside bias
However, while the market continues to hold over the 55 day ma at 0.8510 and the range lows at .8570, Karen Jones, chief analyst at Commerzbank said, an upside bias is preserved. “Initial support is the top of the previous range at 0.8597. A close above the 0.8636 April high should act as a break point to the 0.8793/0.8814 highs seen earlier in the year.” She said failure at 0.8470, although less favoured, would re-target to the 0.8422 mid-May low and the 2012-13 support line at 0.8420.
EUR/GBP reached 0.8671 highs yesterday and has since lost ground over NA and Asia trading. German CPI came in line this morning at 1.8%. The pair will await movements in the EUR/USD and FOMC minutes are key today. TD Securities research teams said the minutes from the FOMC 18-19 June meeting may come across as more hawkish than the Fed wants to see, judging from the steep +40bp move higher in Treasury yields since the June meeting. But Bernanke is speaking two hours later and is expected to massage the message with a more dovish tone, they said. This may limit the pair’s topside.
EUR/GBP Upside bias
However, while the market continues to hold over the 55 day ma at 0.8510 and the range lows at .8570, Karen Jones, chief analyst at Commerzbank said, an upside bias is preserved. “Initial support is the top of the previous range at 0.8597. A close above the 0.8636 April high should act as a break point to the 0.8793/0.8814 highs seen earlier in the year.” She said failure at 0.8470, although less favoured, would re-target to the 0.8422 mid-May low and the 2012-13 support line at 0.8420.