4 Sep 2013
EUR/GBP attracts bids; down -0.30%
FXstreet.com (London) - EUR/GBP has attracted bids and held onto the 0.8400 handle at 0.8426 the low and moved into 0.8440 territory, down -0.30%.
EUR/GBP has struggled this week, dropping from 0.8520, printing a high for this session at 0.8470 and the data didn’t live up to expectations from the EZ either. “..the Euro still gives me the impression of having run out of steam as the rates market can't keep on following the US blindly. I've given up hope of selling EUR/USD in a 1.35-1.40 range. We're unlikely to see fireworks today but sticking long in rates and short of EUR and CHF is one trade which probably does OK in the short and medium terms”, said Kit Juckes, Head of Currency Strategy at Societe Generale. For Sterling, a boost came from a slight improvement in Markit Services PMI. “Looking at the details of the report, it's looking pretty strong all around, given the back-to-back readings north of 60. The strength was primarily from new businesses, pointing to further strength ahead too (new orders rose from 60.0 to 61.3, their highest since May 1997)”, said Tim Davis, Global Strategist, Rates and FX Research at TD Securities.
EUR/GBP erodes 0.8470 June low
Karen Jones, chief analyst at Commerzbank noted that EUR/GBP has eroded and closed below the 0.8470 June low and 2090 day ma – this is viewed as negative. “Intraday rallies should now remain capped by the .8528 previous 2012-2013 uptrend (this should now act as resistance) and will find initial resistance at .8480/.8500 for another leg down to the 0.8399 2013 low and .8366 the 200 week ma”. She continued to suggest that longer term, the market has reversed from the top of a 4 year channel and longer term targets of 0.8280/0.8155/0.7980 have been introduced (Fibonacci retracements of the move up from 2012).
EUR/GBP has struggled this week, dropping from 0.8520, printing a high for this session at 0.8470 and the data didn’t live up to expectations from the EZ either. “..the Euro still gives me the impression of having run out of steam as the rates market can't keep on following the US blindly. I've given up hope of selling EUR/USD in a 1.35-1.40 range. We're unlikely to see fireworks today but sticking long in rates and short of EUR and CHF is one trade which probably does OK in the short and medium terms”, said Kit Juckes, Head of Currency Strategy at Societe Generale. For Sterling, a boost came from a slight improvement in Markit Services PMI. “Looking at the details of the report, it's looking pretty strong all around, given the back-to-back readings north of 60. The strength was primarily from new businesses, pointing to further strength ahead too (new orders rose from 60.0 to 61.3, their highest since May 1997)”, said Tim Davis, Global Strategist, Rates and FX Research at TD Securities.
EUR/GBP erodes 0.8470 June low
Karen Jones, chief analyst at Commerzbank noted that EUR/GBP has eroded and closed below the 0.8470 June low and 2090 day ma – this is viewed as negative. “Intraday rallies should now remain capped by the .8528 previous 2012-2013 uptrend (this should now act as resistance) and will find initial resistance at .8480/.8500 for another leg down to the 0.8399 2013 low and .8366 the 200 week ma”. She continued to suggest that longer term, the market has reversed from the top of a 4 year channel and longer term targets of 0.8280/0.8155/0.7980 have been introduced (Fibonacci retracements of the move up from 2012).