EUR/GBP keeps range around 0.7370 on ECB minutes

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 8, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The cross in the EUR/GBP bounced-off a brief dip to 0.7360 region and reverted to familiar ranges around 0.7370 levels following the release of the ECB monetary policy accounts.

    EUR/GBP stays below hourly 100-SMA

    Currently, the EUR/GBP pair rises 0.46% to 0.7370, reversed a downward spike post ECB minutes release. The EUR/GBP pair saw a knee-jerk to the downside in reaction to the ECB minutes, although regained momentum as markets assess the latest minutes from the BOE and ECB.

    The ECB accounts revealed that the central bank see increased downside risks to the economic and on the inflation outlook on the back of China slowdown fears and lower oil prices. Thus, the ECB finds it appropriate to expand the QE program when necessary, citing a “substantial degree” of stimulus ahead.

    On the GBP-side, the pound continues to push lower versus the US dollar on the back of a non-event BOE decision with the voting composition unchanged at 8-1. Meanwhile, attention now shifts towards the key FOMC minutes for further momentum on the cross.

    EUR/GBP Technical Levels

    To the upside, the next resistance is located at 0.7378 (Hourly 100-DMA), above which it could extend gains to 0.7400 (psychological levels). To the downside immediate support might be located at 0.7348 (20-DMA) below that at 0.7296 (50-DMA).
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