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EUR/GBP extends gains above 0.7950

FXStreet (Córdoba) - The EUR/GBP continue to rise during the American session and printed a fresh high at 0.7964, the strongtes level since last Thursday. The pair is bouncing sharply after falling yesterday to 6-week lows at 0.7889. Since then it has risen 75 pips.

Price is holding near the highs, headed toward the best daily performance since March. A weak Pound pushed the pair to the upside. While the EUR/USD holds unchanged at 1.3130, the GBP/USD is trading at 1.6475, with a decline of more than hundred pips.

EUR/GBP projections and monetary policy

Senior Currency Strategist Jane Foley, mentioned in the Rabobank Monthly Outlook Report that based on a monetary policy divergence the trend will continue to favor the downside in the EUR/GBP. “We maintain a preference of selling EUR/GBP on rallies above 0.80 on the basis that the BoE hike will almost certainly predate any ECB tightening”. Foley said that they look for pair to trend towards 0.77 on a 12-month view.

USD/CAD headed for 1.0990?

USD/CAD is trading at 1.0920, up 0.46% on the day, having posted a daily high at 1.0937 and low at 1.0867.
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ECB: QE rhetoric is the ‘clincher’ this month - BMO

In respect of the ECB, Stephen Gallo, European Head of FX Strategy at BMO Financial Group suggested that words of attrition are coming, but disappointment risks are high and rising.
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