EUR/GBP trims losses as equities drop

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 18, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The bid tone on the EUR recovered as European stocks turned risk averse, pushing the EUR/GBP higher from its daily low of 0.7595 levels.

    Carry unwind resumes

    The shared currency found bids as the European stocks erased early gains and fell into losses. The resulting carry unwind helped the funding currency EUR trim losses. The cross thus recovered from the daily low of 0.7595 to trade around 0.7625 levels.

    The cross remains at the mercy of the risk sentiment in the equities as the economic calendar in the Europe and US is empty.

    EUR/GBP Technical Levels

    A break below 0.76 handle could see the pair extend the drop to 0.7555 (Jan 11 high). On the other hand, a break above the immediate resistance at 0.7694 (Friday’s high) would open doors for a rise to 7714 (Jan 21 high).
    For more information, read our latest forex news.

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