4 Nov 2015
EURGBP: Trading well but move overdone – Lloyds Bank
FXStreet (Delhi) – Research Team at Lloyds Bank, suggest that the GBP has continued to trade well at the start of this week, but technical indicators are warning the move is a little overdone in the near term, especially in EURGBP.
Key Quotes
“The PMI data will dictate as we head into tomorrow's BoE meeting. A weaker than expected number would risk a move back towards .7180 with .7250 area stronger resistance above in the cross. Important support lies around .7055. However, our underlying bias remains that we are heading down to re-test the range lows around .6900 and so the upside should remain limited.”
“President Draghi in a speech overnight seemingly reconfirmed last week’s ECB comments around reviewing their stimulus programme, after weekend comments suggested some doubt to that commitment. As such EUR gains generally are likely to be limited.”
Key Quotes
“The PMI data will dictate as we head into tomorrow's BoE meeting. A weaker than expected number would risk a move back towards .7180 with .7250 area stronger resistance above in the cross. Important support lies around .7055. However, our underlying bias remains that we are heading down to re-test the range lows around .6900 and so the upside should remain limited.”
“President Draghi in a speech overnight seemingly reconfirmed last week’s ECB comments around reviewing their stimulus programme, after weekend comments suggested some doubt to that commitment. As such EUR gains generally are likely to be limited.”