8 Aug 2013
EUR/GBP slightly bid
FXstreet.com (Barcelona) - EUR/GBP was another roller-coaster yesterday due to the Carneys Inflation Report.
EUR/GBP initially found a high of 0.8733 and was then offset with lows of 0.8578. Since the press conference, markets have been digesting the report and the pair has been consolidating and holding steadily above the 0.8600 handle. However, in London markets opening hour, the pair is bid and is edging higher in the 0.8620’s. As a result of the report, markets now understand unemployment at 7% is the target and threshold where base rates might be considered again. Until then, QE could be extended should the economic conditions require it, but for the time being, the UK economy is set to improve without it at the slowest rate in history and rates are expected to remain on hold for an extended period of time. We now wait for the ECB monthly report at 8GMT.
EUR/GBP testing the upside
EUR/GBP is edging slightly higher on the bid. The 20 dma is 0.8646, 50 dma comes as 0.8583 and the 200 dma prints 0.8435. RSI (9) reads 43.96. Supports are ascending from 0.8464, 0.8512, 0.8550, 0.8575. Spot is currently 0.8621 while resistances are coming in at 0.8730, 0.8745, 0.8770 and 0.8815.
EUR/GBP initially found a high of 0.8733 and was then offset with lows of 0.8578. Since the press conference, markets have been digesting the report and the pair has been consolidating and holding steadily above the 0.8600 handle. However, in London markets opening hour, the pair is bid and is edging higher in the 0.8620’s. As a result of the report, markets now understand unemployment at 7% is the target and threshold where base rates might be considered again. Until then, QE could be extended should the economic conditions require it, but for the time being, the UK economy is set to improve without it at the slowest rate in history and rates are expected to remain on hold for an extended period of time. We now wait for the ECB monthly report at 8GMT.
EUR/GBP testing the upside
EUR/GBP is edging slightly higher on the bid. The 20 dma is 0.8646, 50 dma comes as 0.8583 and the 200 dma prints 0.8435. RSI (9) reads 43.96. Supports are ascending from 0.8464, 0.8512, 0.8550, 0.8575. Spot is currently 0.8621 while resistances are coming in at 0.8730, 0.8745, 0.8770 and 0.8815.