1 Dec 2014
EUR/GBP dips to lows at 0.7930
FXStreet (Edinburgh) - The good tone from the sterling is weighing on EUR/GBP at the beginning of the week, dragging it to the area of 0.7930.
EUR/GBP softer post-UK data
The bid sentiment around the pound is offsetting the also positive mood in the EUR, sending the cross lower and partially eroding last Friday’s upside to the upper-0.7900s. Good results from the UK docket, with Consumer Credit and manufacturing PMI surpassing estimates are giving extra oxygen to the GBP, already bolstered by a risk-on environment. In light of the upcoming BoE and ECB meetings, Senior FX Strategist at Rabobank Jane Foley commented, “If QE is announced by the ECB in the coming months we expect that the EUR will remain under pressure and we expect a low grind lower in the value of EUR/GBP towards the 0.76 level on a 12 mth view”.
EUR/GBP levels to watch
At the moment the cross is losing 0.29% at 0.7932 with the next support at 0.7900 (psychological level) ahead of 0.7890 (55-d MA). On the upside, a break above 0.7976 (high Dec.1) would open the door to 0.8002 (high Nov.21).
EUR/GBP softer post-UK data
The bid sentiment around the pound is offsetting the also positive mood in the EUR, sending the cross lower and partially eroding last Friday’s upside to the upper-0.7900s. Good results from the UK docket, with Consumer Credit and manufacturing PMI surpassing estimates are giving extra oxygen to the GBP, already bolstered by a risk-on environment. In light of the upcoming BoE and ECB meetings, Senior FX Strategist at Rabobank Jane Foley commented, “If QE is announced by the ECB in the coming months we expect that the EUR will remain under pressure and we expect a low grind lower in the value of EUR/GBP towards the 0.76 level on a 12 mth view”.
EUR/GBP levels to watch
At the moment the cross is losing 0.29% at 0.7932 with the next support at 0.7900 (psychological level) ahead of 0.7890 (55-d MA). On the upside, a break above 0.7976 (high Dec.1) would open the door to 0.8002 (high Nov.21).