8 Jul 2015
EUR/GBP trades above 0.7150, GBP underperforms ahead of UK budget
FXStreet (Mumbai) - The EUR/GBP pair rose above 0.7150 levels in the European session on concerns that fiscal tightening in the UK could lead to a delay in the rate hike.
GBP hurt by expectations of loose monetary policy
The weak tone on the GBP is due to expectations that further fiscal tightening measures in the UK budget could force the Bank of England to postpone its plans to raise the interest rates. The GBP/USD pair has weakened 0.20% to 1.5430.
On the other hand, the EUR/USD pair rose 0.21% to 1.1036 as markets hope Greece could reach a deal with its creditors this weekend. Consequently, the EUR/GBP spot rose 0.45% to trade at 0.7153. The bid tone on the common currency strengthened in the North American session after Greece was granted another 5-day deadline.
EUR/GBP Technical Levels
The immediate resistance is located at 0.7175 (50-DMA), above which the pair could target 0.7218 (100-DMA). On the other hand, support is seen at 0.7140 and 0.7100 (hourly 50-MA).
GBP hurt by expectations of loose monetary policy
The weak tone on the GBP is due to expectations that further fiscal tightening measures in the UK budget could force the Bank of England to postpone its plans to raise the interest rates. The GBP/USD pair has weakened 0.20% to 1.5430.
On the other hand, the EUR/USD pair rose 0.21% to 1.1036 as markets hope Greece could reach a deal with its creditors this weekend. Consequently, the EUR/GBP spot rose 0.45% to trade at 0.7153. The bid tone on the common currency strengthened in the North American session after Greece was granted another 5-day deadline.
EUR/GBP Technical Levels
The immediate resistance is located at 0.7175 (50-DMA), above which the pair could target 0.7218 (100-DMA). On the other hand, support is seen at 0.7140 and 0.7100 (hourly 50-MA).