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13 Sep 2013
EUR/GBP finding bids below 0.8360
FXstreet.com (London) - EUR/GBP has fallen from steady levels in the 0.8400 handle, plummeting like a stone to reach lows of 0.8357 where bids came in supporting the pair.
EUR/GBP lost grip of the 0.8400 handle amid a broad base rally in Sterling, post disappointing data releases from the US while GBP continues to attract investors in a less negative UK environment. Sterling had performed well yesterday after the unemployment rate dropped to 7.7% in August from 7.8% (nearer the BoE’s 7% “threshold”). For this week, “Sterling gains perhaps more sustainable on the crosses (EUR) than versus the USD as the Fed nears its tapering” explained research teams at TD Securities. Earlier, construction output was slightly stronger than consensus expectations, showing a 2.2% M/M rise in July. Despite a downward revision to June data, Q2 as a whole was revised higher, although not enough to have any real impact on GDP.
EUR/GBP levels, RSI below 30
The 20 DMA is .8506, the 50 DMA is .8580 and the 200 DMA is .8493. RSI (14) reads 24.95. Supports are ascending from .8326 .8355. Spot is currently 8364 while resistances are coming in at .8383, .8415, .8426, .8439, .8465 and .8488.
EUR/GBP lost grip of the 0.8400 handle amid a broad base rally in Sterling, post disappointing data releases from the US while GBP continues to attract investors in a less negative UK environment. Sterling had performed well yesterday after the unemployment rate dropped to 7.7% in August from 7.8% (nearer the BoE’s 7% “threshold”). For this week, “Sterling gains perhaps more sustainable on the crosses (EUR) than versus the USD as the Fed nears its tapering” explained research teams at TD Securities. Earlier, construction output was slightly stronger than consensus expectations, showing a 2.2% M/M rise in July. Despite a downward revision to June data, Q2 as a whole was revised higher, although not enough to have any real impact on GDP.
EUR/GBP levels, RSI below 30
The 20 DMA is .8506, the 50 DMA is .8580 and the 200 DMA is .8493. RSI (14) reads 24.95. Supports are ascending from .8326 .8355. Spot is currently 8364 while resistances are coming in at .8383, .8415, .8426, .8439, .8465 and .8488.