Back
11 Sep 2013
EUR/GBP capped below 0.8440 ahead of UK jobs data
FXstreet.com (Barcelona) - The EUR/GBP foreign exchange cross rate is last trading at fresh session lows 0.8429 on Euro weakness as it sells off against USD following Obama's speech on Syria, ahead of UK jobs data at 08:30 GMT, totally flat though for the week so far.
EUR/GBP downside opportunity on Italian political risk
“For the first time in 18 months, Italian 10 year bond yields rose above Spanish bond yields of the same tenure, which suggests investors now view investing in Italy riskier than Spain,” said BK Asset Management managing director Kathy Lien, adding: “This move can be attributed entirely to the political risk in Italy. While EUR/USD is holding steady because of U.S. dollar weakness, there could be additional downside opportunity in euro crosses such as EUR/GBP. Italy is the third largest economy in the Eurozone and if a tiny country like Cyprus can threaten the region's stability, then Italy is a much bigger headache for the region.”
EUR/GBP key technical levels
Immediate support to the downside for EUR/GBP lies at current levels as Sept 04 lows 0.8425, followed by yesterday's lows at 0.8422, and Monday's weekly lows at 0.8408. To the upside, closest resistance shows at recent session highs 0.8439, followed by yesterday's weekly highs at 0.8453, and past Thursday's highs at 0.8465.
EUR/GBP downside opportunity on Italian political risk
“For the first time in 18 months, Italian 10 year bond yields rose above Spanish bond yields of the same tenure, which suggests investors now view investing in Italy riskier than Spain,” said BK Asset Management managing director Kathy Lien, adding: “This move can be attributed entirely to the political risk in Italy. While EUR/USD is holding steady because of U.S. dollar weakness, there could be additional downside opportunity in euro crosses such as EUR/GBP. Italy is the third largest economy in the Eurozone and if a tiny country like Cyprus can threaten the region's stability, then Italy is a much bigger headache for the region.”
EUR/GBP key technical levels
Immediate support to the downside for EUR/GBP lies at current levels as Sept 04 lows 0.8425, followed by yesterday's lows at 0.8422, and Monday's weekly lows at 0.8408. To the upside, closest resistance shows at recent session highs 0.8439, followed by yesterday's weekly highs at 0.8453, and past Thursday's highs at 0.8465.