OctaFX | OctaFX Forex Broker
Open trading account

EUR/GBP testing 0.7900

FXStreet (Edinburgh) - EUR/GBP is now putting the critical 0.7900 support to the test on Tuesday, dropping from intraday highs above 0.7940.

EUR/GBP weaker on ECB chatter

The abrupt drop in the cross is following market chatter pointing to the ECB and its intentions to buy covered bonds within its asset purchase programme, hurting the common currency. The cross quickly reacted with a dip to multi-day troughs around 0.7900 the figure, extending the correction lower from October tops near 0.8030. In the opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, “Interim support lies at .7900/10 but the market will need to drop below the .7900/10 support line to alleviate upside pressure”.

EUR/GBP levels to watch

As of writing, the cross is losing 0.15% at 0.7905 with the immediate support at 0.7874 (61.8% of 0.7766-0.8046) followed by 0.7851 (low Oct.10) and then 0.7791 (low Oct.2). On the flip side, a breakout of 0.7948 (100-d MA) would target 0.7981 (high Oct.17) en route to0.8027 (high Oct.16).

Not much lift for Asian equities from Chinese data - Societe Generale

Kit Juckes, Global Head of Currency Strategy at Societe Generale points out that Asian stocks didn't receive much of the boost from the better-than expected Chinese GDP and Industrial Production data.
Read more Previous

China's oil demand rises by 6.2% in September

Independent Analyst Malcolm Graham-Wood comments on data revealing that China's oil demand increased 6.2% in September, above expectations.
Read more Next
Start livechat