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16 Jul 2015
EUR/GBP toying with 0.7000
FXStreet (Edinburgh) - After hitting the 0.6990 area overnight, EUR/GBP is extending the consolidative pattern into the European hours, still below the 0.7000 handle.
EUR/GBP attention to the ECB
The divergent monetary policies from the ECB and the BoE has taken a toll in the European cross as of late, in response to hawkish comments by Governor M.Carney and MPC member D.Miles in their speeches before the Parliament this week. Both politicians stressed that the UK economy is closer to a rate hike, boosting the demand for the sterling.
In another tone, the weakness in the euro post-Greek deal on Monday continued to weigh on the cross, pushing it to levels sub-0.7000, or 2-week lows. Ahead in the session, the ECB meeting will take centre stage followed by the press conference by President M.Draghi.
EUR/GBP relevant levels
As of writing the cross is down 0.01% at 0.6998 with the next support at 0.6987 (2015 low Jun.28) ahead of 0.6900 (psychological level). On the upside, a break above 0.7068 (high Jul.15) would open the door to 0.7202 (high Jul.13) and finally 0.7222 (high Jul.9).
EUR/GBP attention to the ECB
The divergent monetary policies from the ECB and the BoE has taken a toll in the European cross as of late, in response to hawkish comments by Governor M.Carney and MPC member D.Miles in their speeches before the Parliament this week. Both politicians stressed that the UK economy is closer to a rate hike, boosting the demand for the sterling.
In another tone, the weakness in the euro post-Greek deal on Monday continued to weigh on the cross, pushing it to levels sub-0.7000, or 2-week lows. Ahead in the session, the ECB meeting will take centre stage followed by the press conference by President M.Draghi.
EUR/GBP relevant levels
As of writing the cross is down 0.01% at 0.6998 with the next support at 0.6987 (2015 low Jun.28) ahead of 0.6900 (psychological level). On the upside, a break above 0.7068 (high Jul.15) would open the door to 0.7202 (high Jul.13) and finally 0.7222 (high Jul.9).