Forex: EUR/GBP holds classic S1 support post BoE decision
Forex pairs in this Article »
EUR/GBP
FXstreet.com (Barcelona) - EURGBP has had a muted reaction to the Bank of England's decision to hold rates at 0.5% and the APF at GBP 375bln.
Having declined throughout the morning session, the pair cam close to confirming the early morning low at 0.8106 as spot found support a pip higher at 0.8107, just above daily classic S1 support at 0.8102. However, with the BoE decision widely expected, the majority of focus has fallen on the up coming ECB decision.
Whilst the majority consensus is that Draghi will keep things as be, there is an underlying suspicion in the market of an outside chance of a rate cut. Strategists at TD Securities note that whilst they can't say that a rate cut is completely off the table, they attribute under a 50% chance of an upcoming cut. Spot is currently trading at 0.8109, down 0.1% on the days trading.
Having declined throughout the morning session, the pair cam close to confirming the early morning low at 0.8106 as spot found support a pip higher at 0.8107, just above daily classic S1 support at 0.8102. However, with the BoE decision widely expected, the majority of focus has fallen on the up coming ECB decision.
Whilst the majority consensus is that Draghi will keep things as be, there is an underlying suspicion in the market of an outside chance of a rate cut. Strategists at TD Securities note that whilst they can't say that a rate cut is completely off the table, they attribute under a 50% chance of an upcoming cut. Spot is currently trading at 0.8109, down 0.1% on the days trading.
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