21 Jan 2015
EUR/GBP jumps to fresh daily highs after BOE MPC
FXStreet (Mumbai) - EUR/GBP jumped to fresh daily highs after the release of Bank of England’s (BOE) minutes which revealed Monetary Policy Committee (MPC) voted unanimously to maintain the base interest rate at the record low of 0.5%.
The EUR/GBP pair now trades at 0.7671 levels, up 0.58% on the day, having posted fresh days’ high at 0.7681 post the release. The EUR/GBP edged higher after all nine members of the MPC voted unanimously on both the base interest rate and the volume of asset purchases against market expectations of a continuous split among policymakers.
The members’ stated that low inflation might persist for longer than the temporary factors implied and concluded that this risk would be increased by an increase in Bank Rate.
EUR/GBP Levels to consider
To the upside, the next resistance is located at 0.7694 (Jan 20 High) and above which it could extend gains to at 0.7720 (10-DMA) levels. To the downside immediate support might be located at 0.7613 (Jan 19 Low) and below that at 0.7592 (Jan 16 Low) levels.
The EUR/GBP pair now trades at 0.7671 levels, up 0.58% on the day, having posted fresh days’ high at 0.7681 post the release. The EUR/GBP edged higher after all nine members of the MPC voted unanimously on both the base interest rate and the volume of asset purchases against market expectations of a continuous split among policymakers.
The members’ stated that low inflation might persist for longer than the temporary factors implied and concluded that this risk would be increased by an increase in Bank Rate.
EUR/GBP Levels to consider
To the upside, the next resistance is located at 0.7694 (Jan 20 High) and above which it could extend gains to at 0.7720 (10-DMA) levels. To the downside immediate support might be located at 0.7613 (Jan 19 Low) and below that at 0.7592 (Jan 16 Low) levels.