Forex: EUR/GBP stalls the run higher ahead of key 0.8230 level
FXstreet.com (Barcelona) - EURGBP is currently at fresh 2-week highs 0.8213, little moved since late NY. The cross had an impressive run higher yesterday exceeding the long term average daily volatility range of 50 pips, gaining a +0.76% from previous Asia-Pacific open yesterday, following a 60+ hour 30 pip trading range it preceded the move.
The cross had an early lift in London trade given good results of Spanish and Italian sovereign bond auctions, with Spanish 10 year yields falling below the 5% rate for first time since March 2012, and selling up to ¬5.8 bln worth of bonds, well above the ¬5 bln max targeted.
Following ECB meeting with unchanged interest rates, and the press conference after it leaving the sense there is some unwillingness to cut rates for the near future, lead to a massive spike in EURUSD, that even though also Cable had its own, it wasn't enough to pare Euro's one, and thus the cross jumping higher. Key risk event for London session ahead will be UK manufacturing production at 09:30 GMT for the Cable side.
Immediate resistance to the upside for EURGBP shows at Dec 27/28 highs 0.8224, followed by Feb 06 lows at 0.8261, and Feb 16 lows at 0.8274. Closets support to the downside lies at Dec 24 lows 0.8186, followed by Dec 19 highs/Dec 28 lows at 0.8167, and Dec 20/Jan 08-09 highs at 0.8160.
The cross had an early lift in London trade given good results of Spanish and Italian sovereign bond auctions, with Spanish 10 year yields falling below the 5% rate for first time since March 2012, and selling up to ¬5.8 bln worth of bonds, well above the ¬5 bln max targeted.
Following ECB meeting with unchanged interest rates, and the press conference after it leaving the sense there is some unwillingness to cut rates for the near future, lead to a massive spike in EURUSD, that even though also Cable had its own, it wasn't enough to pare Euro's one, and thus the cross jumping higher. Key risk event for London session ahead will be UK manufacturing production at 09:30 GMT for the Cable side.
Immediate resistance to the upside for EURGBP shows at Dec 27/28 highs 0.8224, followed by Feb 06 lows at 0.8261, and Feb 16 lows at 0.8274. Closets support to the downside lies at Dec 24 lows 0.8186, followed by Dec 19 highs/Dec 28 lows at 0.8167, and Dec 20/Jan 08-09 highs at 0.8160.
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