10 Mar 2015
EUR/GBP extends decline below 0.7150
FXStreet (Córdoba) - EUR/GBP broke below 0.7150 and dropped to 0.7130 reaching the lowest since December 2007. Price holds near the lows as the euro remains under pressure.
Both EUR/USD and GBP/USD were falling, but the euro at a faster pace. Greenback was rising across the board, trading at the highest level in 11 years.
EUR/GBP in free fall
The euro accelerated to the downside against the pound at the beginning of the year, probably in anticipation of the expansion of the purchase program of the European Central Bank and kept falling after the announcement.
“In the US experience, bond would rally in anticipation of central bank purchases and then sell-off as it began. There has been no "buy the rumor, sell the fact" activity in Europe. European bond yields continue to fall. New record low 10-year yields are being recorded in Germany, Italy, Spain, Portugal and Netherlands. Record low 2-year yields are being seen in France, Italy, Spain and Portugal,” said Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman.
So far, during 2015, EUR/GBP lost almost 700 pips. Today is headed toward the sixth daily decline in row.
Both EUR/USD and GBP/USD were falling, but the euro at a faster pace. Greenback was rising across the board, trading at the highest level in 11 years.
EUR/GBP in free fall
The euro accelerated to the downside against the pound at the beginning of the year, probably in anticipation of the expansion of the purchase program of the European Central Bank and kept falling after the announcement.
“In the US experience, bond would rally in anticipation of central bank purchases and then sell-off as it began. There has been no "buy the rumor, sell the fact" activity in Europe. European bond yields continue to fall. New record low 10-year yields are being recorded in Germany, Italy, Spain, Portugal and Netherlands. Record low 2-year yields are being seen in France, Italy, Spain and Portugal,” said Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman.
So far, during 2015, EUR/GBP lost almost 700 pips. Today is headed toward the sixth daily decline in row.