9 Apr 2015
EUR/GBP to test key support, but failure is likely – KBC
FXStreet (Barcelona) - With EUR/GBP trading close to the support at 0.7222, the KBC Bank Research Team, expects election uncertainty in UK to help support the pair above the mentioned support.
Key Quotes
“… the BoE will stay silent ahead of next month’s elections.”
“In EMU, German trade balance was reported this morning somewhat better with exports and imports both up, but the headline industrial production figures were weaker. As it was due to weak construction while manufacturing was strong, we consider the data modestly positive for the euro, even if its effect should be short-lived.”
“The EUR/GBP pair is close to the 0.7222 support (potential double top). It might be attractive to go for a test, but in the absence of key UK eco news and with the election outcome as uncertain as ever, we don’t see a break lower happen.”
“If it does occur, technically the way is open for a test of the cycle lows around 0.70. Currently a pipe dream, we think.”
Key Quotes
“… the BoE will stay silent ahead of next month’s elections.”
“In EMU, German trade balance was reported this morning somewhat better with exports and imports both up, but the headline industrial production figures were weaker. As it was due to weak construction while manufacturing was strong, we consider the data modestly positive for the euro, even if its effect should be short-lived.”
“The EUR/GBP pair is close to the 0.7222 support (potential double top). It might be attractive to go for a test, but in the absence of key UK eco news and with the election outcome as uncertain as ever, we don’t see a break lower happen.”
“If it does occur, technically the way is open for a test of the cycle lows around 0.70. Currently a pipe dream, we think.”