4 Mar 2015
EUR/GBP bounce towards 0.7350-0.7400 possible within a week - FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Omkar Godbole, lists the macro reasons which might enable EUR/GBP to rise towards 0.7350-0.7400 within a week.
Key Quotes
“The EUR/GBP pair has recovered slightly from the 7-year low of 0.7236 after the Eurozone January retail sales figure beat the market expectations.”
“The pair could rise to 0.7350-0.74 levels in a week’s time from the current level of 0.7354 as–
The European Central Bank (ECB), at its policy meeting tomorrow, is more likely to revise its current year and next year growth forecasts higher. ….the EUR is likely to be bought on prospects of improving economy along with falling inflation.
The British Pound could be ditched ahead of the general election in the UK in May. The currency has repeatedly failed to strengthen on a positive economic data.
Moreover, the EUR/GBP pair could begin pricing-in a possibility of a hung parliament post the May elections in the UK.
“On technical grounds, the next major support for the pair is seen at 0.71 levels. A daily close below 0.7241 could trigger further sell-off towards 0.71.”
“The daily RSI has formed a bullish divergence with the price chart. However, given the above listed factors a sharp move towards 0.71 appears unlikely.”
“Furthermore, the markets are more likely to start pricing-in an upbeat Eurozone data once we are through with the ECB meet tomorrow. Thus, a move towards 0.7350-0.74 appears more likely in a week’s time.”
Key Quotes
“The EUR/GBP pair has recovered slightly from the 7-year low of 0.7236 after the Eurozone January retail sales figure beat the market expectations.”
“The pair could rise to 0.7350-0.74 levels in a week’s time from the current level of 0.7354 as–
The European Central Bank (ECB), at its policy meeting tomorrow, is more likely to revise its current year and next year growth forecasts higher. ….the EUR is likely to be bought on prospects of improving economy along with falling inflation.
The British Pound could be ditched ahead of the general election in the UK in May. The currency has repeatedly failed to strengthen on a positive economic data.
Moreover, the EUR/GBP pair could begin pricing-in a possibility of a hung parliament post the May elections in the UK.
“On technical grounds, the next major support for the pair is seen at 0.71 levels. A daily close below 0.7241 could trigger further sell-off towards 0.71.”
“The daily RSI has formed a bullish divergence with the price chart. However, given the above listed factors a sharp move towards 0.71 appears unlikely.”
“Furthermore, the markets are more likely to start pricing-in an upbeat Eurozone data once we are through with the ECB meet tomorrow. Thus, a move towards 0.7350-0.74 appears more likely in a week’s time.”