FXStreet (Guatemala) – EUR/GBP is currently trading at 0.7184 with a high of 0.7199 and a low of 0.7145.
EUR/GBP has has slowed down in to a consolidation phase within a volatile period on the daily sticks, following the decent from the 0.76 handle. The cross is in a broadly bearish trend still and attempts to the upside are met with resistance. This week is big for the EZ, besides Greece, with there being plenty of data events and including the ECB.
Analysts at TD Securities explained that the focus here will fall on Draghi’s answers regarding liquidity to Greece, his concern and interpretation over the back-up in rates, and whether he suggests there was any reason other than market liquidity which led them to frontload QE before the summer. “We expect Draghi to suggest the move in market rates vindicates the impact QE is having on stabilizing long-term expectations and why the ECB remains committed to fully implementing the programme. We also do not think Draghi will suggest any ulterior motives to front-loading. Lastly, the ECB will have scope to increase their near-term macro forecasts, adding 0.2pp to 2015 GDP and inflation forecasts but is more likely to leave 2016/17 unchanged.”
Meanwhile and technically EUR/GBP is still testing the key 0.7170/90 zone which is the accelerated downtrend and will make little impact on the chart while below the 0.7282 15th March high, as suggested by Karen Jones at Commerzbank this week.
(Market News Provided by FXstreet)