26 Aug 2015
EUR/GBP a sell here, or a sell to buy back?
FXStreet (Guatemala) - EUR/GBP is currently trading with a high of 0.7364 and a low of 0.7292.
EUR/GBP is performing well on the back of the euros funding currency status amongst the turmoil in the market and investors running for cover. EUR/USD has kept form on the 1.13 handle so far although the highs of above 1.17 are distant as the market consolidates the shock and panic euro short covering in a mixed and uncertain environment still.
The pound has fallen through the 20 and 55 DMA's at 1.5622/26, which is highly bullish for the cross also. The US durable goods orders were a strong catalyst for the downside in the puns earlier in the US session, but the move from the comfort zone on the 1.57 handle to reach lows in the US of 1.5466 started overnight in response to the PBoC rate cut and when 1.5620/30 gave way, coupled with previous stories of foreign money leaving the UK property market, it was game over for the pound.
EUR/GBP has a little downside exposed before more upside
Karen Jones, chief analyst at Commerzbank explained that EUR/GBP is holding below the 200 day ma at 0.7365 and explained this is a key resistance exposing the downside before more upside. On the other hand, the short side still has its arguments for the medium term.
EUR/GBP could be an outright sell here on fundamentals
Kit Jukes, macro economist at Societe Generale said yesterday,"The longer I sit in this chair this morning, the longer I lean towards the conclusion that this is as good a level to get short EUR/USD as any. And, if equity indices going on being pummelled, we could see some downside in EUR/JPY too." In turn, he explained, "Stories of foreign money leaving the UK property market will affect FX sentiment for a while, and we'll await better economic data as a trigger to re-set EUR/GBP shorts."
EUR/GBP is performing well on the back of the euros funding currency status amongst the turmoil in the market and investors running for cover. EUR/USD has kept form on the 1.13 handle so far although the highs of above 1.17 are distant as the market consolidates the shock and panic euro short covering in a mixed and uncertain environment still.
The pound has fallen through the 20 and 55 DMA's at 1.5622/26, which is highly bullish for the cross also. The US durable goods orders were a strong catalyst for the downside in the puns earlier in the US session, but the move from the comfort zone on the 1.57 handle to reach lows in the US of 1.5466 started overnight in response to the PBoC rate cut and when 1.5620/30 gave way, coupled with previous stories of foreign money leaving the UK property market, it was game over for the pound.
EUR/GBP has a little downside exposed before more upside
Karen Jones, chief analyst at Commerzbank explained that EUR/GBP is holding below the 200 day ma at 0.7365 and explained this is a key resistance exposing the downside before more upside. On the other hand, the short side still has its arguments for the medium term.
EUR/GBP could be an outright sell here on fundamentals
Kit Jukes, macro economist at Societe Generale said yesterday,"The longer I sit in this chair this morning, the longer I lean towards the conclusion that this is as good a level to get short EUR/USD as any. And, if equity indices going on being pummelled, we could see some downside in EUR/JPY too." In turn, he explained, "Stories of foreign money leaving the UK property market will affect FX sentiment for a while, and we'll await better economic data as a trigger to re-set EUR/GBP shorts."