22 Jul 2015
EUR/GBP: Bears in control on BoE hawkishness
FXStreet (Guatemala) - EUR/GBP is currently trading at 0.6971 with a high of 0.7038 and a low of 0.6963.
EUR/GBP has resumed the downside from the mid point of the 0.70 handle on yesterday's rally away from the multi year lows scored at the start of this week at 0.6932.
EUR/GBP rallied to 0.7045 yesterday with broad based euro strength while the greenback was sold-off from being previously over bid while the market's risk appetite dropped. Supply was timid until 0.7020 was breached to the downside with very slight support at the 0.70 handle, offers breezed through 0.6980 until current levels.
Meanwhile, from the calendar, the BoE MPC votes were 9-0 in favour of keeping rates unchanged. Analysts at TD Securities explained that while concerns over Greece and Chinese equity markets kept policymakers on a cautious footing at the time, the minutes were an incremental shift in the Committee’s thinking toward tighter policy settings in the months ahead.
Technically, the analysts at TD Securities said, "We cannot rule out another squeeze higher in the very near term, but we think the 0.7070 region should contain any further strength. Looking forward, we expect a move toward 0.68 in coming days as the theme of policy divergence between the UK and Eurozone gains traction."
We await another round of Greek parliament today, voting on a second set of new legislation demanded by the country’s creditors before the EU can get down to what matters and define the third bailout package for Greece. Meanwhile, it has been reported that the ECB would back a EUR900m ELA hike.
EUR/GBP has resumed the downside from the mid point of the 0.70 handle on yesterday's rally away from the multi year lows scored at the start of this week at 0.6932.
EUR/GBP rallied to 0.7045 yesterday with broad based euro strength while the greenback was sold-off from being previously over bid while the market's risk appetite dropped. Supply was timid until 0.7020 was breached to the downside with very slight support at the 0.70 handle, offers breezed through 0.6980 until current levels.
Meanwhile, from the calendar, the BoE MPC votes were 9-0 in favour of keeping rates unchanged. Analysts at TD Securities explained that while concerns over Greece and Chinese equity markets kept policymakers on a cautious footing at the time, the minutes were an incremental shift in the Committee’s thinking toward tighter policy settings in the months ahead.
Technically, the analysts at TD Securities said, "We cannot rule out another squeeze higher in the very near term, but we think the 0.7070 region should contain any further strength. Looking forward, we expect a move toward 0.68 in coming days as the theme of policy divergence between the UK and Eurozone gains traction."
We await another round of Greek parliament today, voting on a second set of new legislation demanded by the country’s creditors before the EU can get down to what matters and define the third bailout package for Greece. Meanwhile, it has been reported that the ECB would back a EUR900m ELA hike.