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8 Jul 2013
EUR/GBP supported above 0.8600
FXstreet.com (London) - EUR/GBP had walked lower overnight but has found support at the 0.8600 handle in European markets.
EUR/GBP moved up from the 0.8600 handle despite disappointing export and trade data for Germany. However, the EZ can take some relief with the news from Portugal over the weekend. There has been the appointment of the leader from the conservative party, Paulo Portasy, as deputy Prime minister, reducing the risk of the government coalition collapsing. Meanwhile, both the euro and the pound remain under pressure against the dollar and at a yield disadvantage. There is German Industrial Production coming up for Germany and there will be UK data tomorrow.
EUR/GBP upside in tact
Karen Jones, Chief Analyst at Commerzbank, said EUR/GBP last week saw an erosion of the range high at 0.8597, and suggests this has not exactly been dynamic, however while the market continues to hold over the 55 day ma at 0.8508 and the range lows at 0.8570, an upside bias is preserved, she said. “0.8597 represented a break point on the topside to the 0.8636 April high and the 0.8793/0.8814 highs seen earlier in the year. Failure at 0.8470, although less favoured, would re-target to the 0.8422 mid-May low and the 2012-13 support line at o.8414.”
EUR/GBP moved up from the 0.8600 handle despite disappointing export and trade data for Germany. However, the EZ can take some relief with the news from Portugal over the weekend. There has been the appointment of the leader from the conservative party, Paulo Portasy, as deputy Prime minister, reducing the risk of the government coalition collapsing. Meanwhile, both the euro and the pound remain under pressure against the dollar and at a yield disadvantage. There is German Industrial Production coming up for Germany and there will be UK data tomorrow.
EUR/GBP upside in tact
Karen Jones, Chief Analyst at Commerzbank, said EUR/GBP last week saw an erosion of the range high at 0.8597, and suggests this has not exactly been dynamic, however while the market continues to hold over the 55 day ma at 0.8508 and the range lows at 0.8570, an upside bias is preserved, she said. “0.8597 represented a break point on the topside to the 0.8636 April high and the 0.8793/0.8814 highs seen earlier in the year. Failure at 0.8470, although less favoured, would re-target to the 0.8422 mid-May low and the 2012-13 support line at o.8414.”