Global macro overview for 20/09/2016:

Interesting comments have hit the mass media as the Bank of France governor Francois Villeroy spoke on Europe 1 Radio this morning. He said that France’s Gross Domestic Product for 2016 should be at the level of 1.4% as the growth is holding up, but might have hit the ceiling. Moreover, he mentioned that ECB’s asset purchase programme is working, inflation should soon be over 1%, French reforms pays off, but France needs to meet its deficit reduction pledges. There is one important final conclusion from this interview: with the GDP at the level of 1.4% for 2016 France might be easily left behind the United Kingdom even after Brexit. This means it does not really look that good anymore in terms of economic growth.

Let’s now take a look at the EUR/GBP technical picture in the daily time frame. Clear and strong rebound from the level of 0.8340 can be observed at this time frame and it looks like bulls want to test the recent highs again. The market trades above all daily moving averages and the next resistance is seen at the level of 0.8629.

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The material has been provided by InstaForex Company – www.instaforex.com

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