Euro’s volatility continues to persist as the further dipping streak in its exchange rate on the cards. While in the UK, for good reason inflation has disappointed. Staying at zero for the second month in a row, as the house prices slowed down further.And it’s not just inflation, additionally the growth in manufacturing wage has slowed, the UK election is nearing (scheduled on May 7th) a risk for higher EUR/GBP. Both these factors and inflation in addition make the BoE more meticulous about the GBP strength and its impact this year. It is expected the further deflation in the near future which is a niggling thing for the BoE.Technicals show the pair took a proper support at the 0.7150 level to twist things back around and form a hammer after falling during the day on today. From last couple trading sessions some type of impulsive candles occurred back to back. At the moment, traders can find opportunities of shorting on every rise (probably on 0.7168 levels) as it may rebound for some time to dip back again. It simply isn’t worth risking trading capital involved in a market that has no interest in going anywhere as the market by this time would have priced in the above news. So add positions on every spike. On an hourly chart one can figure out Euro tumbling, this one could be luring for swing traders.
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