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28 Aug 2013
EUR/GBP moving upwards ahead of McCarney speech
FXstreet.com (Athens) - The EUR/GBP is trading higher for a second straight day, while market focuses on Mark Carney has to say today in his lunchtime.
EUR/GBP will be largely at the mercy of sterling today, as BOE Governor speaks
The EUR/GBP is trading upwards for a second day. Investors might find that the single currency moves in a bizarre uptrend movement amidst the fears surrounding Syria and the impending US military involvement, which drove safe havens such as US Treasuries higher. BTMU FX research in its daily FX snapshot, ‘It is his first significant speech since
he took over as Governor, and will provide the first opportunity to comment
on developments since the BoE introduced forward rate guidance on the 8th
August. It is unlikely that Governor Carney will have been pleased that
forward rate guidance, a form of easing, unintentionally prompted a
tightening in overall monetary conditions in the UK with short rates rising
and the pound strengthening, even accounting for the further pick up in
cyclical economic momentum in the UK. As a result it would be surprising if
Governor Carney did not attempt to push back against those market
expectations for earlier BoE tightening, to reinforce the potential
effectiveness of the guidance.
Technical outlook on EUR/GBP
At the time of writing the pair is trading at 0.8630, up 0.18%. The FXstreet.com Trend Index shows the pair to be slightly bullish. Daily pivot point support can be found at 0.8520, 0.8500, 0.8484 and resistance at 0.8600, 0.8622, 0.8698 respectively.
EUR/GBP will be largely at the mercy of sterling today, as BOE Governor speaks
The EUR/GBP is trading upwards for a second day. Investors might find that the single currency moves in a bizarre uptrend movement amidst the fears surrounding Syria and the impending US military involvement, which drove safe havens such as US Treasuries higher. BTMU FX research in its daily FX snapshot, ‘It is his first significant speech since
he took over as Governor, and will provide the first opportunity to comment
on developments since the BoE introduced forward rate guidance on the 8th
August. It is unlikely that Governor Carney will have been pleased that
forward rate guidance, a form of easing, unintentionally prompted a
tightening in overall monetary conditions in the UK with short rates rising
and the pound strengthening, even accounting for the further pick up in
cyclical economic momentum in the UK. As a result it would be surprising if
Governor Carney did not attempt to push back against those market
expectations for earlier BoE tightening, to reinforce the potential
effectiveness of the guidance.
Technical outlook on EUR/GBP
At the time of writing the pair is trading at 0.8630, up 0.18%. The FXstreet.com Trend Index shows the pair to be slightly bullish. Daily pivot point support can be found at 0.8520, 0.8500, 0.8484 and resistance at 0.8600, 0.8622, 0.8698 respectively.