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17 Jun 2013
EUR/GBP bearish start to the week
FXstreet.com (London) - EUR/GBP has played out a wider range of late, while opening this morning on the defensive.
EUR/GBP losing some traction
EUR/GBP is on the defensive while a better tone to the UK housing economy is playing out, along with construction activity preforming better. The numbers however are still below levels of a year ago, but with an annual decline that has slowed sharply. CPI from the Eurozone has come in line with expectations, with core rising by 1.2%, so inflation presents no hurdles to the ECB easing. There is little in the way of any top tier data today, but the market is waiting for the BoE minutes coming up later in the week and FOMC to give us some direction on EUR/USD.
EUR/GBP technically bearish
Saeed Amen, strategist at Nomura explains that spot is a touch lower. “We flip to a bearish view. Spot has been unable to break the top side Bollinger band in recent weeks”. He notes that bandwidth is falling, suggesting some retracement in the recent range is likely lower. “Our target for the move is 0.8475 (just above lower Bollinger band), which is relatively close”.
EUR/GBP losing some traction
EUR/GBP is on the defensive while a better tone to the UK housing economy is playing out, along with construction activity preforming better. The numbers however are still below levels of a year ago, but with an annual decline that has slowed sharply. CPI from the Eurozone has come in line with expectations, with core rising by 1.2%, so inflation presents no hurdles to the ECB easing. There is little in the way of any top tier data today, but the market is waiting for the BoE minutes coming up later in the week and FOMC to give us some direction on EUR/USD.
EUR/GBP technically bearish
Saeed Amen, strategist at Nomura explains that spot is a touch lower. “We flip to a bearish view. Spot has been unable to break the top side Bollinger band in recent weeks”. He notes that bandwidth is falling, suggesting some retracement in the recent range is likely lower. “Our target for the move is 0.8475 (just above lower Bollinger band), which is relatively close”.