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26 Jan 2015
EUR/GBP sidelining around 0.7450
FXStreet (Edinburgh) - The better tone in both the sterling and the shared currency is prompting EUR/GBP to attempt a consolidative pattern in the mid-0.7400s on Monday.
EUR/GBP looks south post-ECB
The European cross remains under pressure following the ECB decision last week, as markets now expect the euro to depreciate further in a context of the open-ended QE programme recently announced by the central bank. Next on tap for the cross will be the IFO indicator in Germany, EMU’s Retail Sales and UK’s Mortgage Approvals by BBA.
Jane Foley, Senior Currency Strategist at Rabobank, commented, “the aggressively dovish ECB has increased downside pressure in EUR/GBP, which we expect to continue grinding lower this year. In our view, the move lower in EUR/GBP makes it even more likely that BoE policy will remain on hold this year”.
EUR/GBP levels to watch
The cross is now losing 0.23% at 0.7455 with the immediate support at 0.7406 (2015 low Jan.26) followed by 0.7391 (low Jan.28 2008) and then 0.7300 (psychological level). On the flip side, a breakout of 0.7511 (hourly high Jan.26) would open the door to 0.7582 (high Jan.23) and finally 0.7628 (10-d MA).
EUR/GBP looks south post-ECB
The European cross remains under pressure following the ECB decision last week, as markets now expect the euro to depreciate further in a context of the open-ended QE programme recently announced by the central bank. Next on tap for the cross will be the IFO indicator in Germany, EMU’s Retail Sales and UK’s Mortgage Approvals by BBA.
Jane Foley, Senior Currency Strategist at Rabobank, commented, “the aggressively dovish ECB has increased downside pressure in EUR/GBP, which we expect to continue grinding lower this year. In our view, the move lower in EUR/GBP makes it even more likely that BoE policy will remain on hold this year”.
EUR/GBP levels to watch
The cross is now losing 0.23% at 0.7455 with the immediate support at 0.7406 (2015 low Jan.26) followed by 0.7391 (low Jan.28 2008) and then 0.7300 (psychological level). On the flip side, a breakout of 0.7511 (hourly high Jan.26) would open the door to 0.7582 (high Jan.23) and finally 0.7628 (10-d MA).