19 Nov 2013
EUR/GBP struggles with 0.84 handle
FXstreet.com (London) - EUR/GBP has lost grip of the 0.84 handle despite Germans economy continuing to expand.
Germany’s ZEW survey expectations component rose to 54.6 this month, from 52.8 in October while the current conditions index dropped to 28.7 from 29.7. The data implies that the German economy continued to expand in Q4 but that the pace remains moderate. Norway GDP rose 0.7% in Q3 (0.5% ex-oil and shipping). However, the key driver had been the market’s initial reaction to the Bank of England’s hawkish November Inflation Report. However, Darren Williams, Senior European Economist at Alliance Bernstein is less convinced on how the in fact things are looking. “The Bank’s main message is that, even if growth rates remain strong, monetary policy is likely to remain highly accommodative until excess capacity in the UK has been eliminated”.
EUR/GBP Levels
The 20 DMA is 0.8449, the 50 DMA is 0.8436 and the 200 DMA is 0.8526. RSI (14) reads 46.81. Supports are ascending from 0.8300, 0.8322, 0.8340, and 0.8358. Spot is currently 0.8386 while resistances are 0.8407, 0.8416, 0.8464 and 0.8477.
Germany’s ZEW survey expectations component rose to 54.6 this month, from 52.8 in October while the current conditions index dropped to 28.7 from 29.7. The data implies that the German economy continued to expand in Q4 but that the pace remains moderate. Norway GDP rose 0.7% in Q3 (0.5% ex-oil and shipping). However, the key driver had been the market’s initial reaction to the Bank of England’s hawkish November Inflation Report. However, Darren Williams, Senior European Economist at Alliance Bernstein is less convinced on how the in fact things are looking. “The Bank’s main message is that, even if growth rates remain strong, monetary policy is likely to remain highly accommodative until excess capacity in the UK has been eliminated”.
EUR/GBP Levels
The 20 DMA is 0.8449, the 50 DMA is 0.8436 and the 200 DMA is 0.8526. RSI (14) reads 46.81. Supports are ascending from 0.8300, 0.8322, 0.8340, and 0.8358. Spot is currently 0.8386 while resistances are 0.8407, 0.8416, 0.8464 and 0.8477.