EUR/GBP returns below 0.7400

FXStreet (Edinburgh) - The correction lower in the single currency is now prompting sellers to drag EUR/GBP back below the 0.7400 handle.

EUR/GBP eyes on Greece

The cross managed to rebound from fresh multi-year lows around the mid-0.7300s on Wednesday following the increasing bid tone surrounding the sterling. Hopes of a positive outcome in the Greek debt negotiation keeps fuelling the optimism in the broader markets. Following today’s request of a loan extension by Greek officials, an emergency Eurogroup meeting has been already scheduled for tomorrow.

Ahead in the session, the ECB will publish its novel ‘accounts’ of the last meeting, with markets expecting further details regarding the voting pattern of the already announced QE programme.

EUR/GBP relevant levels

At the moment the cross is flat at 0.7380 with the next hurdle at 0.7441 (38.2% of 0.7592-0.7348) ahead of 0.7443 (high Feb.17) and finally 0.7455 (high Feb.12). On the flip side, a break below 0.7348 (7-year low Feb.18) would aim for 0.7321 (monthly low Jan.2008) and then 0.7300 (psychological level).

USDCHF jumped higher by 50 pips

The USD/CHF pair recovered from the low of 0.9378 to hit a high of 0.9439, falling just short of its 50-DMA located at 0.9441 levels as rumors of NSB intervention started doing the rounds on the wires.
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