13 Nov 2013
EUR/GBP continues decline on BoE Inflation Report
FXstreet.com (Barcelona) - Having already declined sharply from its morning high at 0.8464 following better than expected UK Employment numbers, EUR/GBP has continued its decline to post a daily low at 0.8383 as BoE Governor Carney starts his Quarterly Inflation report.
EUR/GBP driven lower again on BoE Inflation report
The meeting started with BoE Governor Carney upgrading the UK unemployment forecast to 7% by Q3 2015. Further, he added that the BoE cut its forecast for near term inflation due to softer economic data and the value of GBP. He continued to add that the Bank sees a downside forecast risk for GDP, but an upside for Unemployment. Carney commented that the crisis is a long way from resolution, and that BoE staff expect GDP to grow 0.9% WoW in Q4. Further adding to the upbeat tone, he added that he feels the recovery has finally taken hold, but growth is yet to be at normal levels and a sustained recovery requires a revival in investment. Additionally, CPI expectations are “well-anchored” and the jobless rate has fallen faster than expected.
What EUR/GBP price levels should be watched today?
The pair is currently trading at 0.8391, down -0.62% on today’s trading. Today’s central pivot point is 0.8425, with support at 0.8397 (S1), 0.8350 (S2) and 0.8322 (S3), and resistance at 0.8472 (R1), 0.8500 (r2) and 0.8547 (R3). Especial attention should be paid to the range between 0.8450-0.8416 where several key levels are clustered.
EUR/GBP driven lower again on BoE Inflation report
The meeting started with BoE Governor Carney upgrading the UK unemployment forecast to 7% by Q3 2015. Further, he added that the BoE cut its forecast for near term inflation due to softer economic data and the value of GBP. He continued to add that the Bank sees a downside forecast risk for GDP, but an upside for Unemployment. Carney commented that the crisis is a long way from resolution, and that BoE staff expect GDP to grow 0.9% WoW in Q4. Further adding to the upbeat tone, he added that he feels the recovery has finally taken hold, but growth is yet to be at normal levels and a sustained recovery requires a revival in investment. Additionally, CPI expectations are “well-anchored” and the jobless rate has fallen faster than expected.
What EUR/GBP price levels should be watched today?
The pair is currently trading at 0.8391, down -0.62% on today’s trading. Today’s central pivot point is 0.8425, with support at 0.8397 (S1), 0.8350 (S2) and 0.8322 (S3), and resistance at 0.8472 (R1), 0.8500 (r2) and 0.8547 (R3). Especial attention should be paid to the range between 0.8450-0.8416 where several key levels are clustered.