20 Jan 2015
EUR/GBP keeps falling, around 0.7630
FXStreet (Edinburgh) - The upbeat sentiment around the pound is the main driver in today’s EUR/GBP decline to multi-year lows around 0.7640.
EUR/GBP in March 2008 levels
The European cross is netting an even week so far, looking to revert two consecutive weekly closes in the red territory. However, the cross will remain in the center of attention in light of the BoE minutes and the critical UK labour market report due tomorrow, all ahead the crucial ECB gathering scheduled for Thursday.
In the view of Christin Tuxen, Senior Analyst at Danske Bank, “A subdued inflation outlook and a weaker global backdrop have made the Bank of England (BoE) keen to tone down rate-hike expectations… Overall, the timing of the first rate hike remains entirely conditional on incoming data, but the recent soft stance from the BoE suggests it is unlikely it will raise rates before H2 15”.
EUR/GBP relevant levels
At the moment the cross is losing 0.56% at 0.7637 and a breach below 0.7596 (low Mar.10 2008) would expose 0.7535 (low Feb.27 2008). On the upside, the first up barrier aligns at 0.7703 (38.2% of 0.7875-0.7596) followed by 0.7741 (10-d MA) and finally 0.7747 (high Jan.15).
EUR/GBP in March 2008 levels
The European cross is netting an even week so far, looking to revert two consecutive weekly closes in the red territory. However, the cross will remain in the center of attention in light of the BoE minutes and the critical UK labour market report due tomorrow, all ahead the crucial ECB gathering scheduled for Thursday.
In the view of Christin Tuxen, Senior Analyst at Danske Bank, “A subdued inflation outlook and a weaker global backdrop have made the Bank of England (BoE) keen to tone down rate-hike expectations… Overall, the timing of the first rate hike remains entirely conditional on incoming data, but the recent soft stance from the BoE suggests it is unlikely it will raise rates before H2 15”.
EUR/GBP relevant levels
At the moment the cross is losing 0.56% at 0.7637 and a breach below 0.7596 (low Mar.10 2008) would expose 0.7535 (low Feb.27 2008). On the upside, the first up barrier aligns at 0.7703 (38.2% of 0.7875-0.7596) followed by 0.7741 (10-d MA) and finally 0.7747 (high Jan.15).