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Weaker Euro pushes EUR/GBP to fresh session lows near 0.7330

FXStreet (Mumbai) - The cross in the EUR/GBP dropped to fresh session lows in the early moves, extending its corrective slide further, as the euro remains heavily offered versus the greenback heading into a data-quiet European session ahead.

EUR/GBP moves away from fresh 4-week highs

Currently, the EUR/GBP pair falls -0.45% to fresh session lows of 0.7332, having witnessed a gap down open. The shared currency battering extends into the early European hours against the British currency as the latter stands relatively resilient to the broad based US dollar strength, triggered by Fed Chair Yellen’s pro-tightening comments.

Yellen indicated in her prepared remarks that Fed rate hike is likely to happen later this year, although the timing of such lift-off will depend on the economic assessment.

Meanwhile, focus now shifts towards the US GDP data due to be reported later in the US session as the EUR calendar remains data-empty with only the German Buba President Weidmann’s speech on the cards to fill-in the void.

EUR/GBP Technical Levels

To the upside, the next resistance is located at 0.7370 (Today’s High) levels and above which it could extend gains to 0.7411 (Sept 24 High) levels. To the downside immediate support might be located at 0.7292 (Sept 11 Low) below that at 0.7264 (Sept 16 Low).

EUR/USD – Range bound trading in the offering - MUFG

Research Team at MUFG, note that as the uncertainty over outlook for ECB & Fed policy has increased, the euro continues to remain range bound against the US dollar in the near-term and is fluctuating roughly in line with daily gyrations in global risk sentiment. The range for the coming week is likely to be 1.1050-1.1450 with neutral bias.
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