20 Mar 2015
EUR/GBP retreats from highs
FXStreet (Edinburgh) - The softer tone from both the sterling and the single currency on Friday is now prompting EUR/GBP to leave the area of session highs around 0.7245.
EUR/GBP consolidates above 0.7200
The cross managed to bounce off recent multi-year lows near the psychological support at 0.7000 last week, fundamentally bolstered by a renewed selling interest around the pound. Against the steady-ish trade from the euro, the pound has faced increasing selling pressure following recent comments by BoE’s chief economist Andrew Haldane on Thursday. He actually did not rule out a rate cut in order to fend off a deflationary trend in the UK economy, in clear contrast with Governor Carney’s appreciations last week.
Data wise in the euro area, German Producer Prices disappointed investors in February, contracting further than expected. Ahead in the session EMU’s Current Account and UK’s Public Sector Net Borrowing will be in the limelight.
EUR/GBP levels to watch
As of writing the cross is up 0.08% at 0.7231 with the next resistance at 0.7238 (high Mar.6) and finally 0.7251 (21-d MA). On the downside, a drop beyond 0.7120 (low Mar.17) would expose 0.7093 (low Mar.16) and then 0.7036 (low Mar.12).
EUR/GBP consolidates above 0.7200
The cross managed to bounce off recent multi-year lows near the psychological support at 0.7000 last week, fundamentally bolstered by a renewed selling interest around the pound. Against the steady-ish trade from the euro, the pound has faced increasing selling pressure following recent comments by BoE’s chief economist Andrew Haldane on Thursday. He actually did not rule out a rate cut in order to fend off a deflationary trend in the UK economy, in clear contrast with Governor Carney’s appreciations last week.
Data wise in the euro area, German Producer Prices disappointed investors in February, contracting further than expected. Ahead in the session EMU’s Current Account and UK’s Public Sector Net Borrowing will be in the limelight.
EUR/GBP levels to watch
As of writing the cross is up 0.08% at 0.7231 with the next resistance at 0.7238 (high Mar.6) and finally 0.7251 (21-d MA). On the downside, a drop beyond 0.7120 (low Mar.17) would expose 0.7093 (low Mar.16) and then 0.7036 (low Mar.12).