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20 Nov 2013
EUR/GBP in multi-day lows
FXstreet.com (Edinburgh) - Rumours about the likeliness of the ECB could implement negative deposit rates are taking a toll on the single currency, dragging the EUR/GBP to the area around 0.8330.
EUR/GBP hurt by strong pound, weak euro
News-agency Bloomberg informed that the European Central Bank would be considering the implementation of negative 0.10% deposit rate, hitting the single currency and dragging the cross to fresh lows in the 0.8330 region, levels last seen in early November. Collaborating with the offered trend around the cross, today’s neutral tone from the BoE minutes would be adding to the recent GBP strength. Paul Robson, Senior FX Strategist at RBS, suggested, “Last week, we noted that there should be initial support around 0.8350, but that rallies here would likely struggle on moves back higher as we approached 0.8365 and main resistance at 0.8410. Only above 0.8450 would the negative bias be lost”.
EUR/GBP key levels
The cross is now losing 0.81% at 0.8327 with the next support at 0.8300 (low Nov.7) followed by 0.8285 (50% of 0.7756-0.8815) and finally 0.8266 (low Jan.15). On the upside, a break above 0.8415 (high Nov.20) would expose 0.8416 (high Nov.13) and then 0.8443 (MA21d).
EUR/GBP hurt by strong pound, weak euro
News-agency Bloomberg informed that the European Central Bank would be considering the implementation of negative 0.10% deposit rate, hitting the single currency and dragging the cross to fresh lows in the 0.8330 region, levels last seen in early November. Collaborating with the offered trend around the cross, today’s neutral tone from the BoE minutes would be adding to the recent GBP strength. Paul Robson, Senior FX Strategist at RBS, suggested, “Last week, we noted that there should be initial support around 0.8350, but that rallies here would likely struggle on moves back higher as we approached 0.8365 and main resistance at 0.8410. Only above 0.8450 would the negative bias be lost”.
EUR/GBP key levels
The cross is now losing 0.81% at 0.8327 with the next support at 0.8300 (low Nov.7) followed by 0.8285 (50% of 0.7756-0.8815) and finally 0.8266 (low Jan.15). On the upside, a break above 0.8415 (high Nov.20) would expose 0.8416 (high Nov.13) and then 0.8443 (MA21d).