15 Jul 2015
EUR/GBP: Downside playing out on strong greenback
FXStreet (Guatemala) - EUR/GBP is currently trading at 0.7017 with a high of 0.7068 and a low of 0.7013.
EUR/GBP is feeling the pressures to the downside, testing support ahead of the 0.70 handle while the greenback takes the euro down to a 1 week low to 1.0934 the low.
The catalyst for a weaker euro today came in Yellen's testimony while the US is on track for rate hikes before the year is out. Carney also delivered a hawkish tone yesterday which leaves the pound in good stead going forward while we await the ECB tomorrow where markets expect no changes and that the Governing Council is expected to maintain its rates at record lows, and continue buying €60 billion of mainly sovereign bonds.
Elsewhere, we turn to Greece and await the outcome of the vote in parliament, which so far doesn't look promising with the reports that 107 out of 201 Syriza central committee members are condemning Tsipras' agreement with Eurozone.
Technically, EUR/GBP has a bearish bias
Karen Jones, chief analyst at Commerzbank explained that the 0.6957 6 year down channel is in focus. "This was our medium downside target and it is possible that it will again hold. This is the break down point to the 0.6571/41 the 2007 low."
EUR/GBP is feeling the pressures to the downside, testing support ahead of the 0.70 handle while the greenback takes the euro down to a 1 week low to 1.0934 the low.
The catalyst for a weaker euro today came in Yellen's testimony while the US is on track for rate hikes before the year is out. Carney also delivered a hawkish tone yesterday which leaves the pound in good stead going forward while we await the ECB tomorrow where markets expect no changes and that the Governing Council is expected to maintain its rates at record lows, and continue buying €60 billion of mainly sovereign bonds.
Elsewhere, we turn to Greece and await the outcome of the vote in parliament, which so far doesn't look promising with the reports that 107 out of 201 Syriza central committee members are condemning Tsipras' agreement with Eurozone.
Technically, EUR/GBP has a bearish bias
Karen Jones, chief analyst at Commerzbank explained that the 0.6957 6 year down channel is in focus. "This was our medium downside target and it is possible that it will again hold. This is the break down point to the 0.6571/41 the 2007 low."