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23 Jan 2015
EUR/GBP breaches 0.7500
FXStreet (Edinburgh) - The EUR continues on the soft tone on Friday, dragging EUR/GBP to fresh multi-year lows in sub-0.7500 levels.
EUR/GBP weak… weaker on euro
The European cross intensifies its march south today following the mounting bearishness surrounding the single currency post-ECB announcements on Thursday. Adding to the downside, UK retail sales surprised investors in December, surpassing previous estimates and advancing 0.4% inter-month.
The cross is now meandering levels last seen in February 2008, around 0.7475/70 and according to analysts at Danske Bank, “EUR weakness coupled with a decent UK outlook will keep EUR/GBP under pressure for now. The upcoming inflation reports from the BoE could however be instrumental in preparing the markets for the tightening that we think is in store for H2”.
EUR/GBP levels to watch
The cross is now retreating 1.29% at 0.7473 with the next support at 0.7430 (2015 low Jan.23) ahead of 0.7400 (psychological level) and then 0.7391 (low Jan.28 2008). On the flip side, a break above 0.7536 (hourly high Jan.23) would open the door to 0.7582 (high Jan.23) and finally 0.7620 (hourly high Jan.22).
EUR/GBP weak… weaker on euro
The European cross intensifies its march south today following the mounting bearishness surrounding the single currency post-ECB announcements on Thursday. Adding to the downside, UK retail sales surprised investors in December, surpassing previous estimates and advancing 0.4% inter-month.
The cross is now meandering levels last seen in February 2008, around 0.7475/70 and according to analysts at Danske Bank, “EUR weakness coupled with a decent UK outlook will keep EUR/GBP under pressure for now. The upcoming inflation reports from the BoE could however be instrumental in preparing the markets for the tightening that we think is in store for H2”.
EUR/GBP levels to watch
The cross is now retreating 1.29% at 0.7473 with the next support at 0.7430 (2015 low Jan.23) ahead of 0.7400 (psychological level) and then 0.7391 (low Jan.28 2008). On the flip side, a break above 0.7536 (hourly high Jan.23) would open the door to 0.7582 (high Jan.23) and finally 0.7620 (hourly high Jan.22).