13 Aug 2015
EUR/GBP attacks 0.7100 on ECB minutes
FXStreet (Mumbai) - The shared currency extended its bearish bias against the British pound in the mid-European session, with EUR/GBP attacking 0.71 handle, as the latest ECB July 16 monetary policy minutes was read dovish and also revealed that ECB policy makers saw Euro zone’s recovery as ‘disappointing.’
EUR/GBP languishing near 0.71 handle
Currently, the EUR/GBP pair trades -0.54% lower at 0.7107, testing 0.7100 levels. The EUR/GBP cross extended further to the downside after the euro came under renewed selling pressure following the release of ECB monetary policy minutes.
ECB Minutes turned out to be dovish and showed that the policymakers were disappointed with the Euro zone economic recovery. The July 16 meeting minutes also raised concerns over ‘unusually low’ inflation in the Euro land while also noting that the central bank is ready to take more action if required.
remains strongly offered largely on weakness seen in the EUR/USD pair on strengthening greenback as PBOC-led risk aversion dissipated.
Moreover, the EUR/GPB cross also failed to garner some support from upbeat German CPI data released earlier today. The European data flow will now continue on Friday, with German GDP in the morning, followed by the euro zone CPI and GDP figures.
On the other hand, GBP/USD seems stuck around 1.5630 levels amid a data-dry GBP macro calendar with fresh incentives awaited from US retail sales and weekly jobless claim.
EUR/GBP Technical Levels
To the upside, the next resistance is located at 0.7157 (Today’s High) levels and above which it could extend gains 0.7171 (Aug 12 High) levels. To the downside immediate support might be located at 0.7100 below that at 0.7079 (Aug 12 Low).
EUR/GBP languishing near 0.71 handle
Currently, the EUR/GBP pair trades -0.54% lower at 0.7107, testing 0.7100 levels. The EUR/GBP cross extended further to the downside after the euro came under renewed selling pressure following the release of ECB monetary policy minutes.
ECB Minutes turned out to be dovish and showed that the policymakers were disappointed with the Euro zone economic recovery. The July 16 meeting minutes also raised concerns over ‘unusually low’ inflation in the Euro land while also noting that the central bank is ready to take more action if required.
remains strongly offered largely on weakness seen in the EUR/USD pair on strengthening greenback as PBOC-led risk aversion dissipated.
Moreover, the EUR/GPB cross also failed to garner some support from upbeat German CPI data released earlier today. The European data flow will now continue on Friday, with German GDP in the morning, followed by the euro zone CPI and GDP figures.
On the other hand, GBP/USD seems stuck around 1.5630 levels amid a data-dry GBP macro calendar with fresh incentives awaited from US retail sales and weekly jobless claim.
EUR/GBP Technical Levels
To the upside, the next resistance is located at 0.7157 (Today’s High) levels and above which it could extend gains 0.7171 (Aug 12 High) levels. To the downside immediate support might be located at 0.7100 below that at 0.7079 (Aug 12 Low).