EUR/GBP smashing through 55 DMA on Draghi

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 22, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Guatemala) - EUR/GBP is currently trading on the offer during the ECB press conference while Draghi states that there are still concerns over China and emerging markets and a degree of accommodation will need to be re-examined at the December meeting.

    We had the interest rate decision with the ECB staying on hold as widely expected. The main refi rate unchanged at 0.05%, also the deposit rate unchanged -0.20% and the marginal lending rate unchanged 0.30%.

    In the press conference, Draghi explained that the recovery is continuing as it was in 2nd quarter of this year driven by domestic consumption in the main while lower oil prices and monetary policy and lower headwinds than the past in a recovery from external countries are helping. 8% appreciation in the euro has not been helpful.

    Draghi on inflation

    EUR/GBP levels

    Technically, 0.7492 is a key target to the upside although price direction took out the 55 and 200 day ma at 0.7299/55 levels. Below here are the September lows at 0.7198.
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