21 Jan 2015
EUR/GBP keeps highs post-BoE
FXStreet (Edinburgh) - EUR/GBP remains in the upper end of today’s range, hovering over 0.7660 after climbing as high as 0.7680 after the release of the BoE minutes.
EUR/GBP boosted as GBP drops
The demand for the pound remains subdued today, although it has managed to recover part of the ground lost in the wake of the publication of the BoE minutes and jobs data in the British economy. Recall that the ILO unemployment rate surprised markets dropping to 5.8% in the three months ended in November and the Claimant Count decreased more than forecasts by 29.7K. However, the unanimous vote from the MPC favouring the current scheme of rates and Gilts purchases hurt the sterling, lifting the European cross as a consequence.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, “The market will remain directly offered below the .7765/.7874 region. Note that .our longer term target is the .7445 43 year uptrend”.
EUR/GBP key levels
At the moment the cross is advancing 0.39% at 0.7652 and a break above 0.7692 (high Jan.20) would target 0.7703 (38.2% of 0.7875-0.7596) en route to 0.7715 (10-d MA). On the other hand, the initial support lies at 0.7596 (low Jan.16) ahead of 0.7562 (up trend line from 2000-07 lows) and then 0.7535 (low Feb.27 2008).
EUR/GBP boosted as GBP drops
The demand for the pound remains subdued today, although it has managed to recover part of the ground lost in the wake of the publication of the BoE minutes and jobs data in the British economy. Recall that the ILO unemployment rate surprised markets dropping to 5.8% in the three months ended in November and the Claimant Count decreased more than forecasts by 29.7K. However, the unanimous vote from the MPC favouring the current scheme of rates and Gilts purchases hurt the sterling, lifting the European cross as a consequence.
Karen Jones, Head of FICC Technical Analysis at Commerzbank, “The market will remain directly offered below the .7765/.7874 region. Note that .our longer term target is the .7445 43 year uptrend”.
EUR/GBP key levels
At the moment the cross is advancing 0.39% at 0.7652 and a break above 0.7692 (high Jan.20) would target 0.7703 (38.2% of 0.7875-0.7596) en route to 0.7715 (10-d MA). On the other hand, the initial support lies at 0.7596 (low Jan.16) ahead of 0.7562 (up trend line from 2000-07 lows) and then 0.7535 (low Feb.27 2008).