FXStreet (Edinburgh) – It seems volatility is taking a breather before the opening bell in Euroland, with EUR/GBP sidelined around the mid-0.7300s.
EUR/GBP looks to Greece, BoE
Another day has passed and still no deal in the Greek front. In the meantime, unease is gathering traction amongst market participants as key repayments to the IMF are looming and the lack of progress is turning the situation quite dramatic.
However, the single currency has turned it attention to the German debt markets as the main catalyst in the very near term. Wednesday’s sharp sell off in Bunds boosted the shared currency and propelled the cross to fresh tops in the vicinity of 0.7360 while 10-year yields clinched fresh ytd peaks.
On the GBP-side, today’s BoE interest rate decision is expected to yield no surprised, leaving the monetary stance unchanged.
EUR/GBP key levels
As of writing the cross is losing 0.02% at 0.7349 facing the next support at 0.7252 (low Jun.3) ahead of 0.7179 (low Jun.2) and finally 0.7145 (low Jun.1). On the other hand, a breakout of 0.7357 (high Jun.3) would expose 0.7419 (high May 1) and the 0.7449 (high May 6).
(Market News Provided by FXstreet)