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9 Sep 2013
EUR/GBP moving slightly upwards on a light calendar day
FXstreet.com (Athens)- The EUR/GBP opened with a small gap due to super thin liquidity, but manages to trade higher since Asian’s trading session.
The single currency is trading upwards against the ‘sterling’ ahead of a very light calendar day, regarding Euro zone and Great Britain. Besides, the Euro zone Sentix Investor Confidence which will be released a bit later and a further improvement in sentiment is widely anticipated, there are no other major key data drivers regarding the cross currency today. On Friday, UK production released flat, with a 0.2% factory output gain offset by lower utilities output due to hot weather. On the other hand, in Euro land power horse, i.e. Germany, exports fell 1.1% in July and industrial production was reported down 1.7%. Both outcomes were weaker than the lowest published forecast, adding weight to the Bundesbank view that Q3 GDP growth will be weaker than Q2’s 0.7% bounce. ECB Draghi seems to remain very cautious about the Euro zone return to growth and not much enthusiastic about recovery in the Euro land. On the other hand, there is “Carney-mania” across the board, which might bolster the demand for the sterling.
Technical outlook on EUR/GBP
A bullish hammer at channel support by April/May lows near 0.8400 suggest that a bounce may be in order. At the time of writing the pair is trading at 0.8412, down 0.18%. Technically speaking, a decent daily break below 0.8487 (61.8% Fib) will expose the 0.8448 (76.4% Fib) as the next objective, while a reversal back above 0.8487 on a daily closing basis targets 0.8518 (50% Fib expansion). The FXstreet.com Trend Index shows the pair to be strongly bearish in a 15-minutes time framework. Daily pivot point support can be found at 0.8420, 0.8395, 0.8374, and resistance at 0.8600, 0.8622, 0.8698 respectively.
The single currency is trading upwards against the ‘sterling’ ahead of a very light calendar day, regarding Euro zone and Great Britain. Besides, the Euro zone Sentix Investor Confidence which will be released a bit later and a further improvement in sentiment is widely anticipated, there are no other major key data drivers regarding the cross currency today. On Friday, UK production released flat, with a 0.2% factory output gain offset by lower utilities output due to hot weather. On the other hand, in Euro land power horse, i.e. Germany, exports fell 1.1% in July and industrial production was reported down 1.7%. Both outcomes were weaker than the lowest published forecast, adding weight to the Bundesbank view that Q3 GDP growth will be weaker than Q2’s 0.7% bounce. ECB Draghi seems to remain very cautious about the Euro zone return to growth and not much enthusiastic about recovery in the Euro land. On the other hand, there is “Carney-mania” across the board, which might bolster the demand for the sterling.
Technical outlook on EUR/GBP
A bullish hammer at channel support by April/May lows near 0.8400 suggest that a bounce may be in order. At the time of writing the pair is trading at 0.8412, down 0.18%. Technically speaking, a decent daily break below 0.8487 (61.8% Fib) will expose the 0.8448 (76.4% Fib) as the next objective, while a reversal back above 0.8487 on a daily closing basis targets 0.8518 (50% Fib expansion). The FXstreet.com Trend Index shows the pair to be strongly bearish in a 15-minutes time framework. Daily pivot point support can be found at 0.8420, 0.8395, 0.8374, and resistance at 0.8600, 0.8622, 0.8698 respectively.