14 Jan 2016
EUR/GBP retreat from the highs continues
FXStreet (Mumbai) - The EUR continued to surrender gains after the ECB minutes release, pushing the EUR/GBP cross to 0.7556 levels.
EUR hurt by ECB’s take on rate cut
The minutes released a few minutes ago showed the policymakers see a further room for a rate cut following the December’s 10bps reduction. The minutes also expressed worry about the sliding inflation.
Consequently, the common currency trimmed gains, but the risk aversion in the European equities is keeping the bid tone on the EUR intact to some extent. Later in the day, the cross could revisit the daily highs if the US stocks extend Wednesday’s risk aversion.
EUR/GBP Technical Levels
The cross currently trades around 0.7565. The immediate resistance is seen at 0.7624 (Jan 15, 2015 low), above which the cross could target 0.7693 (Jan 20, 2015 high). On the other hand, failure to sustain above 0.7555 (Jan 11 high) would open doors for technical correction to 0.7500 handle.
EUR hurt by ECB’s take on rate cut
The minutes released a few minutes ago showed the policymakers see a further room for a rate cut following the December’s 10bps reduction. The minutes also expressed worry about the sliding inflation.
Consequently, the common currency trimmed gains, but the risk aversion in the European equities is keeping the bid tone on the EUR intact to some extent. Later in the day, the cross could revisit the daily highs if the US stocks extend Wednesday’s risk aversion.
EUR/GBP Technical Levels
The cross currently trades around 0.7565. The immediate resistance is seen at 0.7624 (Jan 15, 2015 low), above which the cross could target 0.7693 (Jan 20, 2015 high). On the other hand, failure to sustain above 0.7555 (Jan 11 high) would open doors for technical correction to 0.7500 handle.