20 Jan 2015
EUR/GBP slides to 0.7610
FXStreet (Córdoba) - The euro dropped further against the pound and reached a fresh 2 day low. The EUR/GBP pair broke below 0.7620/25 (Jan 19 low) and fell to 0.7610. It was trading at 0.7619, below the level it has at the beginning of the week.
If it ends the day around 0.7620 or below it would post the lowest daily close since January 2008.
EUR/GBP remains weak ahead of ECB
The euro has been under pressure during the last weeks amid expectations about the European Central Bank announcing a sovereign debt purchase program in two days. “It is our base case that the ECB rate setting meeting on Thursday will see, at a minimum, some form of pre-announcement on the start of sovereign based ECB QE. This would be followed by full details being announced at the following meeting (on 5 March), with purchases to begin immediately afterwards”, explained Elwin de Groot, Senior Eurozone Strategist at Rabobank.
The outcome of Thursday’s meeting and of Draghi’s press conference is likely to have a major impact on the EUR/GBP price.
If it ends the day around 0.7620 or below it would post the lowest daily close since January 2008.
EUR/GBP remains weak ahead of ECB
The euro has been under pressure during the last weeks amid expectations about the European Central Bank announcing a sovereign debt purchase program in two days. “It is our base case that the ECB rate setting meeting on Thursday will see, at a minimum, some form of pre-announcement on the start of sovereign based ECB QE. This would be followed by full details being announced at the following meeting (on 5 March), with purchases to begin immediately afterwards”, explained Elwin de Groot, Senior Eurozone Strategist at Rabobank.
The outcome of Thursday’s meeting and of Draghi’s press conference is likely to have a major impact on the EUR/GBP price.