10 Feb 2015
EUR/GBP again fails to break 0.7400 support – KBC
FXStreet (Barcelona) - The KBC Bank Research Desk comments that a soft EUR did drag EUR/GBP lower but the pair failed to break below the correction low at 0.7404, further adding that only an extended decline by the euro or marginally soft BOE’s inflation report can lead the pair below the mentioned support.
Key Quotes
“Today, UK industrial production was in line with expectations; manufacturing was marginally better than expected. However, the deviation from consensus was too small to trigger a real directional move in sterling.”
“The decline of EUR/USD dragged EUR/GBP south. The pair filled bids in the 0.7410 area, but as was the case yesterday, a real test of the correction low (0.7404) didn’t occur. For such a break, more high profile news (e.g. a not too soft inflation report or an extended euro down‐leg) is probably needed. However, none of those triggers were pulled today.”
“The euro spike on rumours of an agreement with Greece also called off the test of the downside in EUR/GBP. The pair is again changing hands in the 0.7420 area.”
“Gyrations in the euro and the dollar pushed the pair up and down the lower half of the 1.52 big figure. The pair trades little changed in the 1.5225/30 area at the moment of writing.”
Key Quotes
“Today, UK industrial production was in line with expectations; manufacturing was marginally better than expected. However, the deviation from consensus was too small to trigger a real directional move in sterling.”
“The decline of EUR/USD dragged EUR/GBP south. The pair filled bids in the 0.7410 area, but as was the case yesterday, a real test of the correction low (0.7404) didn’t occur. For such a break, more high profile news (e.g. a not too soft inflation report or an extended euro down‐leg) is probably needed. However, none of those triggers were pulled today.”
“The euro spike on rumours of an agreement with Greece also called off the test of the downside in EUR/GBP. The pair is again changing hands in the 0.7420 area.”
“Gyrations in the euro and the dollar pushed the pair up and down the lower half of the 1.52 big figure. The pair trades little changed in the 1.5225/30 area at the moment of writing.”