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22 Jan 2015
EUR/GBP down to fresh lows
FXStreet (Edinburgh) - The bearish tone in the EUR post-ECB meeting is dragging EUR/GBP to the area of fresh multi-year lows around 0.7580.
EUR/GBP weaker on Draghi
The cross extends its decline following the dovish tone by President Draghi in today’s press conference, where the central bank announced a QE programme. The EUR came under further selling pressure after the ECB expanded its purchases of assets-backed securities (ABS) and covered bonds to €60 billion per month, starting in March and until September 2016. The cross is falling accordingly to test levels last seen in February 2008.
In the opinion of the Investec Dealing Desk, “I would expect a move lower from here in the Euro in the medium term as the continued effect of negative deposit rates combined with flooding of over Euro 1 trillion extra into the market over the next year and a half should continue to weaken the single currency”
EUR/GBP relevant levels
The cross is now losing 0.83% at 0.7593 with the next support at 0.7567 (up trend line from 2000-2007 lows) and then 0.7535 low Feb.27 2008). On the upside, a breakout of 0.7703 (38.2% of 0.7875-0.7596) would expose 0.7741 (10-d MA) and finally 0.7747 (high Jan.15).
EUR/GBP weaker on Draghi
The cross extends its decline following the dovish tone by President Draghi in today’s press conference, where the central bank announced a QE programme. The EUR came under further selling pressure after the ECB expanded its purchases of assets-backed securities (ABS) and covered bonds to €60 billion per month, starting in March and until September 2016. The cross is falling accordingly to test levels last seen in February 2008.
In the opinion of the Investec Dealing Desk, “I would expect a move lower from here in the Euro in the medium term as the continued effect of negative deposit rates combined with flooding of over Euro 1 trillion extra into the market over the next year and a half should continue to weaken the single currency”
EUR/GBP relevant levels
The cross is now losing 0.83% at 0.7593 with the next support at 0.7567 (up trend line from 2000-2007 lows) and then 0.7535 low Feb.27 2008). On the upside, a breakout of 0.7703 (38.2% of 0.7875-0.7596) would expose 0.7741 (10-d MA) and finally 0.7747 (high Jan.15).