18 Sep 2013
EUR/GBP finds bids at this weeks lows
FXstreet.com (London) - EUR/GBP dropped from the territory of the 0.8400 handle and fell to print 0.8352 the low.
EUR/GBP is decisively lower on the back of, to say cautiously, an optimistic outlook for the UK economy post the BoE minutes. Research teams at TD Securities said the BoE minutes were the highlight macro development overnight, with a more optimistic tone helping to boost Sterling to the top of the performance rankings among the G10 currencies. “The MPC acknowledged the better UK activity lately and upgraded their growth outlook for the remainder of the year, but perhaps more importantly they did not make any attempt to push back on the recent rise in Gilt yields. 10-yr Gilts are now testing 3.0% again as a result. Eurozone construction output rose 0.3% m/m and Spain's bad loan ratio rose to 11.97% from 11.63% according to the Bank of Spain.
EUR/GBP Levels
The 20 DMA is .8483, the 50 DMA is .8567 and the 200 DMA is .8498. RSI (14) prints 22.57 indicating a consolidation period here in an overall offered scenario for the pair. Supports are ascending from .8300 .8326 and .8355 where the pair sits. Resistances are .8372, .8398, .8411, .8426, .8439 and .8465.
EUR/GBP is decisively lower on the back of, to say cautiously, an optimistic outlook for the UK economy post the BoE minutes. Research teams at TD Securities said the BoE minutes were the highlight macro development overnight, with a more optimistic tone helping to boost Sterling to the top of the performance rankings among the G10 currencies. “The MPC acknowledged the better UK activity lately and upgraded their growth outlook for the remainder of the year, but perhaps more importantly they did not make any attempt to push back on the recent rise in Gilt yields. 10-yr Gilts are now testing 3.0% again as a result. Eurozone construction output rose 0.3% m/m and Spain's bad loan ratio rose to 11.97% from 11.63% according to the Bank of Spain.
EUR/GBP Levels
The 20 DMA is .8483, the 50 DMA is .8567 and the 200 DMA is .8498. RSI (14) prints 22.57 indicating a consolidation period here in an overall offered scenario for the pair. Supports are ascending from .8300 .8326 and .8355 where the pair sits. Resistances are .8372, .8398, .8411, .8426, .8439 and .8465.