18 Feb 2015
EUR/GBP: Greeks playing the game until 11th hour?
FXStreet (Guatemala) - EUR/GBP is currently trading at 0.7357 with a high of 0.7437 and a low of 0.7352.
EUR/GBP is offered on the back of the action in London when the UK's labour market was showing signs of stability and improvements with the unemployment rate easing to 5.7% in the three months ended in December from 5.8% expected. The Claimant Count was down by 38.6K.
More from the UK, and as expected, the Central Bank's minutes showed a unanimous vote in favour of leaving things as they are in respect to the BoE's monetary policy. But, with continued improvements in the economy, this leaves the BoE a stretch ahead of the "competition" and more in line with the Fed than, say, BoC, RBA, BoJ and ECB...thus traders are supporting the pound.
EUR/GBP heavy over EZ uncertainties
There is little out from the EZ in respect of the diary, although there are on- going headlines around Greece and the ECB. Greece are noted to have come forward and proposed that they will move forward with an extension of the bailout programme as a bridge until the summer - they have until Friday to come up with something but the word is they are preparing something for tomorrow. Although down on the day today, the euro is remaining relatively strong amongst all of this uncertainty, with the market putting bets on a deal being stuck at the 11th hour. However, tonight sees the ECB meet on its emergency loan facility. The Greeks are concerned as there is a risk that the ECB will cut off Greek banks.
EUR/GBP bearish below 0.77 handle
Technically, the pair remains offered below 0.7713/67 region (Oct 2014 lows) and the support at 0.7370 has been breached but only by a margin, but significantly, closes below this point open up scope for the inter-year pivot at 0.7235/25, as explained by Karen Jones, chief analyst at Commerzbank.
EUR/GBP is offered on the back of the action in London when the UK's labour market was showing signs of stability and improvements with the unemployment rate easing to 5.7% in the three months ended in December from 5.8% expected. The Claimant Count was down by 38.6K.
More from the UK, and as expected, the Central Bank's minutes showed a unanimous vote in favour of leaving things as they are in respect to the BoE's monetary policy. But, with continued improvements in the economy, this leaves the BoE a stretch ahead of the "competition" and more in line with the Fed than, say, BoC, RBA, BoJ and ECB...thus traders are supporting the pound.
EUR/GBP heavy over EZ uncertainties
There is little out from the EZ in respect of the diary, although there are on- going headlines around Greece and the ECB. Greece are noted to have come forward and proposed that they will move forward with an extension of the bailout programme as a bridge until the summer - they have until Friday to come up with something but the word is they are preparing something for tomorrow. Although down on the day today, the euro is remaining relatively strong amongst all of this uncertainty, with the market putting bets on a deal being stuck at the 11th hour. However, tonight sees the ECB meet on its emergency loan facility. The Greeks are concerned as there is a risk that the ECB will cut off Greek banks.
EUR/GBP bearish below 0.77 handle
Technically, the pair remains offered below 0.7713/67 region (Oct 2014 lows) and the support at 0.7370 has been breached but only by a margin, but significantly, closes below this point open up scope for the inter-year pivot at 0.7235/25, as explained by Karen Jones, chief analyst at Commerzbank.