22 Jan 2014
EUR/GBP dropping like a stone
FXstreet.com (Guatemala) - EUR/GBP has dropped from 0.8230 to below 0.8190 and marked a low of 0.8178 so far.
Sterling is decisively bid on the back of the UK Labour report which surprised to the upside. Strategists at TD Securities noted, “With the unemployment rate falling from 7.4% to 7.1% in November, in line with the downside risk that we had highlighted and significantly beating market expectations for a reading of 7.3%...this leaves the unemployment rate on track to hit the BoE’s 7.0% threshold next month, with the next employment report due on 19 February”. They continued to explain, “In between now and then though we have the next BoE decision on 6 February and the Inflation Report on 12 February, where we’ll likely see the demise of forward guidance and a move to old-fashioned monetary policy, where the focus will be turned toward inflation expectations”.
EUR/GBP Levels
The 20 DMA is 0.8302, the 50 DMA is 0.8340 and the 200 DMA is 0.8469. RSI (14) reads 29.06. supports are ascending from 0.8134, 0.8145, and 0.8165. Spot is 0.8180. 0.8205, 0.8232, 0.8264, 0.8287, 0.8316 and 0.8349.
Sterling is decisively bid on the back of the UK Labour report which surprised to the upside. Strategists at TD Securities noted, “With the unemployment rate falling from 7.4% to 7.1% in November, in line with the downside risk that we had highlighted and significantly beating market expectations for a reading of 7.3%...this leaves the unemployment rate on track to hit the BoE’s 7.0% threshold next month, with the next employment report due on 19 February”. They continued to explain, “In between now and then though we have the next BoE decision on 6 February and the Inflation Report on 12 February, where we’ll likely see the demise of forward guidance and a move to old-fashioned monetary policy, where the focus will be turned toward inflation expectations”.
EUR/GBP Levels
The 20 DMA is 0.8302, the 50 DMA is 0.8340 and the 200 DMA is 0.8469. RSI (14) reads 29.06. supports are ascending from 0.8134, 0.8145, and 0.8165. Spot is 0.8180. 0.8205, 0.8232, 0.8264, 0.8287, 0.8316 and 0.8349.