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16 Jul 2015
EUR/GBP muted around 0.6985 on ECB, Draghi’s comments eyed
FXStreet (Mumbai) - The EUR/GBP cross kept losses in the European session as the shared currency showed no reaction to the ECB unchanged monetary policy decision, as the move was widely anticipated. While markets now eye ECB press conference for Draghi’s views on Greece and the key ELA decision.
EUR/GBP capped below 0.7000
Currently, the EUR/GBP pair -0.16% lower at 0.6990, moving slightly away from a new seven and a half year low reached at 0.6969. The cross in EUR/GBP remained in red following the eventless ECB decision, having negligible impact on the European currency.
The European Central Bank (ECB) left its benchmark rates intact at their record lows on Thursday for already the eight straight rate-setting meeting - in what turned out to be a low impact decision.
The EUR/GBP cross remains in red largely driven by the widening gap between monetary policies in the UK and the Eurozone. Hawkish comments by Governor Mark Carney and MPC member David Miles in their speeches at the Resolution Foundation on Tuesday, add to speculations that the BoE might begin to normalize monetary policy soon.
Meanwhile, markets now look forward to the ECB press conference for ECB Chief Draghi’s comments as its widely expected that the presser will be centered on Greece.
EUR/GBP Technical Levels
To the upside, the next resistance is located at 0.7002 (Today’s High) levels and above which it could extend gains 0.7068 (July 15 High) levels. To the downside immediate support might be located at 0.6969 (Today’s Low) below that at 0.6900 (2007 levels).
EUR/GBP capped below 0.7000
Currently, the EUR/GBP pair -0.16% lower at 0.6990, moving slightly away from a new seven and a half year low reached at 0.6969. The cross in EUR/GBP remained in red following the eventless ECB decision, having negligible impact on the European currency.
The European Central Bank (ECB) left its benchmark rates intact at their record lows on Thursday for already the eight straight rate-setting meeting - in what turned out to be a low impact decision.
The EUR/GBP cross remains in red largely driven by the widening gap between monetary policies in the UK and the Eurozone. Hawkish comments by Governor Mark Carney and MPC member David Miles in their speeches at the Resolution Foundation on Tuesday, add to speculations that the BoE might begin to normalize monetary policy soon.
Meanwhile, markets now look forward to the ECB press conference for ECB Chief Draghi’s comments as its widely expected that the presser will be centered on Greece.
EUR/GBP Technical Levels
To the upside, the next resistance is located at 0.7002 (Today’s High) levels and above which it could extend gains 0.7068 (July 15 High) levels. To the downside immediate support might be located at 0.6969 (Today’s Low) below that at 0.6900 (2007 levels).