EUR/GBP sidelines below 0.7100

FXStreet (Edinburgh) - Both the sterling and the single currency keep a consolidative pattern so far, taking EUR/GBP to trade accordingly in the area below the 0.7100 handle.

EUR/GBP focus on Greece, data

The Greek front appears somewhat calm so far, following the country’s default on the IMF repayment of €1.6 billion on Tuesday and ahead of Sunday’s referendum, where the ‘No’ option remains slightly ahead.

Ahead in the session, final manufacturing prints in Euroland and the UK will take centre stage followed by the always-interesting speech by Governor M.Carney. Across the pond, the employment report gauged by ADP and the ISM Manufacturing will be the salient points.

EUR/GBP key levels

At the moment the pair is losing 0.03% at 0.7089 facing the next support at 0.7074 (low Jun.30) ahead of 0.6988 (2015 low Jun.29) and then 0.6900 (psychological level). On the flip side, a breakout of 0.7127 (high Jun.30) would expose 0.7168 (high Jun.29) and finally 0.7211 (high Jun.22).

Central Bank Reserves and negative EUR rates – DB

Alan Ruskin, Macro strategist at RBS, offers the Q1 IMF COFER summary, and further explains that the negative rates might not have been necessarily the key factor behind EUR’s slide.
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Market Movers: NZD outperforms on short covering – TDS

Prashant Newnaha, Strategist at TD Securities, summarizes the financial market performance and key developments during the Asian trading session.
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