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3 Jun 2015
EUR/GBP: Up to test key barriers sub May losses
FXStreet (Guatemala) - EUR/GBP is currently trading at 0.7341 with a high of 0.7358 and a low of 0.7252.
The euro is strong and the market is pushing it to test barriers across the board, despite the uncertainties around Greece and nothing in particularly great about EZ conditions. However, the dollar was in supply on Brainard's dovish words yesterday that punished the US dollar a little more post the rally in the euro on in line CPI's and Greece.
Meanwhile, today’s ECB had Draghi was showing no appetite to take a swipe at higher rates or a stronger EUR. However, as analysts at TD Securities explained, "This apparent comfort with the sell-off in fixed income markets seemed to be the main thing that markets focused on today, with 10y bund yields pushing about 15bps higher on the day. This has put additional upward pressure on EURUSD".
Technically, a full recovery of May's losses is on the cards through the 0.74 handle if 0.7380 is accomplished on further demand while 0.7200 should offer some support in a reversal.
The euro is strong and the market is pushing it to test barriers across the board, despite the uncertainties around Greece and nothing in particularly great about EZ conditions. However, the dollar was in supply on Brainard's dovish words yesterday that punished the US dollar a little more post the rally in the euro on in line CPI's and Greece.
Meanwhile, today’s ECB had Draghi was showing no appetite to take a swipe at higher rates or a stronger EUR. However, as analysts at TD Securities explained, "This apparent comfort with the sell-off in fixed income markets seemed to be the main thing that markets focused on today, with 10y bund yields pushing about 15bps higher on the day. This has put additional upward pressure on EURUSD".
Technically, a full recovery of May's losses is on the cards through the 0.74 handle if 0.7380 is accomplished on further demand while 0.7200 should offer some support in a reversal.