3 Oct 2013
EUR/GBP slightly upwards ahead of crucial UK,EZ data
FXstreet.com (Athens) – The EUR/GBP has been moving to the upper level for a second straight day since the opening of the Asian trading session amidst easing worries on the Italian political issue.
EUR/GBP on the upper side by Draghi’s comments and a confidence vote to Letta
The EUR/GBP is still heading upwards on Thursday’s opening European trading session due mainly to the fact that the Italian PM Enrico Letta won a confidence vote in the Italian parliament as well as on super dovish Draghi’s tone. Elaborating on, investors seem that had been expecting an ultra dovish statement speech by Draghi, thus, after the President of ECB mixed in comments about an improving economy with no intentions for interventions in the FX markets accompanied with his usual super dovish rhetoric tone, the single currency was highly boosted across the board. Today, we are ahead of crucial data pertaining both to UK and EZ, therefore traders should bear in mind that especially the UK ones could lead to increased volatility.
Technical Outlook on the EUR/GBP
Karen Jones, Head Technical Analyst at Commerzbank mentions that the “EUR/GBP following the fairly robust rebound from the September low at .8332, we would allow for some near term strength and consolidation. We expect that the market will find strong resistance at the June low at .8470 and the 38.2% retracement at .8500. This resistance is reinforced by the 2 month downtrend at .8494 and we maintain our bearish bias while capped here. Intraday rallies should struggle .8400/5 to leave focus once more on the .8332 September low.”
EUR/GBP on the upper side by Draghi’s comments and a confidence vote to Letta
The EUR/GBP is still heading upwards on Thursday’s opening European trading session due mainly to the fact that the Italian PM Enrico Letta won a confidence vote in the Italian parliament as well as on super dovish Draghi’s tone. Elaborating on, investors seem that had been expecting an ultra dovish statement speech by Draghi, thus, after the President of ECB mixed in comments about an improving economy with no intentions for interventions in the FX markets accompanied with his usual super dovish rhetoric tone, the single currency was highly boosted across the board. Today, we are ahead of crucial data pertaining both to UK and EZ, therefore traders should bear in mind that especially the UK ones could lead to increased volatility.
Technical Outlook on the EUR/GBP
Karen Jones, Head Technical Analyst at Commerzbank mentions that the “EUR/GBP following the fairly robust rebound from the September low at .8332, we would allow for some near term strength and consolidation. We expect that the market will find strong resistance at the June low at .8470 and the 38.2% retracement at .8500. This resistance is reinforced by the 2 month downtrend at .8494 and we maintain our bearish bias while capped here. Intraday rallies should struggle .8400/5 to leave focus once more on the .8332 September low.”