19 Jan 2016
EUR/GBP off lows on dovish Carney
FXStreet (Mumbai) - Sterling ran into fresh offers after BOE Carney’s dovish comments, triggering a recovery in the EUR/GBP cross from sub-0.76 levels to 0.7630 levels.
BOE rate hike delay already priced-in?
Carney’s comment on interest rates – now is not the time to raise rates – is largely in line with the market expectations. The 1000-pip slide in Cable was mainly due to markets pricing-in a delay in the BOE rate hike.
Hence, Carney’s take on interest rate is not surprising. Nevertheless, Governor’s comments did hurt Sterling, which trimmed gains across the board. The cross now trades around 0.7630 levels.
EUR/GBP Technical Levels
The immediate resistance is seen at 0.7636 (hourly 50-MA), above which gains could be extended to 0.7694 (Friday’s high). On the other hand, a break below hourly 100-MA at 0.7594 would open doors for a slide to 0.7539 (hourly 200-MA).
BOE rate hike delay already priced-in?
Carney’s comment on interest rates – now is not the time to raise rates – is largely in line with the market expectations. The 1000-pip slide in Cable was mainly due to markets pricing-in a delay in the BOE rate hike.
Hence, Carney’s take on interest rate is not surprising. Nevertheless, Governor’s comments did hurt Sterling, which trimmed gains across the board. The cross now trades around 0.7630 levels.
EUR/GBP Technical Levels
The immediate resistance is seen at 0.7636 (hourly 50-MA), above which gains could be extended to 0.7694 (Friday’s high). On the other hand, a break below hourly 100-MA at 0.7594 would open doors for a slide to 0.7539 (hourly 200-MA).