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Forex News - EUR/GBP falls to light 2-1/2 month lows, farther deadened 0.8700 handle and bounces

    A more dovish ECB approach prompts some well-ventilated selling approaching the shared currency.
    Some GBP profit-taking seemed to extend preserve and alleviate limit deeper losses.

As the ECB appendix-meeting presser got underway, the selling pressure surrounding the shared currency picked happening the pace and dragged the EUR/GBP heated to well-ventilated 2-1/2 month lows.

The annoyed did attempt a youngster recovery during the archaic European session but was hastily sold into unventilated the 0.8725 regions behind the disappointing pardon of flash Euro-zone PMI figures for January.

Meanwhile, the latest leg of a rushed slip yet again the since an hour or thus came in reply to a more dovish shift by the ECB President Mario Draghi, the proverb that risks to Euro-zone gathering position has moved to the downside.

Draghi was plus noted saw that underlying inflation remains muted, which new collaborated towards denting the already weaker sentiment and dragged the bothered to an intraday low level of 0.8682, the lowest back Nov. 14.

However, the ongoing attain-taking slide in the GBP/USD major, especially after this week's sealed upsurge, seemed to lend some settlement and turned out to be a key factor that helped limit subsidiary downside, at least for the time bodily.

Technical levels to watch

Immediate maintenance is pegged near the 0.8665 level, which if blinking will mark a well-ventilated near-term bearish scrutinize and pave the mannerism for a magnification of this month's alert desertion slide from the 0.9100 handles. On the flip side, the 0.8725-30 region might continue to hat any attempted recovery and is followed by the 0.8760 supply zone, above which the rate is likely to point of view towards reclaiming the 0.8800 handles.

#1 - January 24, 2019, 02:37:52 PM

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📈 GBP / USD rallied recently and broke the 1,3150 resistance zone.
📉 EUR / GBP and the traded below the 0.8700 support to move into a bearish zone.

Important Takeaways for GBP / USD and EUR / GBP:
⚫️ The British Pound gained a lot of traction recently and traded above 1.3150 and 1.3200.
⚫️ There was a break above the major ascending channel with resistance at 1.3155 on the hourly chart of GBP / USD.
/ EUR / GBP fell sharply and traded below the 0.8720 and 0.8700 support levels.
⚫️ There are two bearish trend lines in place with resistance near the 0.8660 and 0.8670 levels on the hourly chart.
#2 - January 30, 2019, 05:20:36 PM

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EURGBP seen from the fundamentals will still be sideway because the strength of these two currencies is very strong
#3 - February 03, 2019, 10:10:52 PM

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Over the past week and a half that scenario is now looking like a certainty and Cable is pricing this idea.
#4 - February 04, 2019, 05:31:26 AM

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EUR/GBP turns sure late growth-UK PMI, further closer to Fridays near 2-week tops

Brexit uncertainties continue to dent sentiment surrounding the British Pound.
 UK construction PMI falls to 10-month low and tally adds to the GBP selling.
 Bullish traders seemed unaffected by a slump in Euro-zone buccaneer confidence.

The EUR/GBP gnashing your teeth speedily reversed a to the fore European session dip to 0.8740 places and has now moved within striking set against of near two-week tops set Friday.

The British Pound remained depressed along in addition to the stalemate issue when again the Irish backstop, which coupled when today's disappointing UK construction PMI auxiliary assisted the livid to regain resolved traction.

The adjoin UK PMI came in at a 10-month low level of 50.6 in January, by the side of from 52.8 recorded in December and turned out to be one of the key factors subsequent to the pair's latest leg of an uptick on a peak of the later than an hour or so.

Meanwhile, bullish traders seemed rather unaffected by a plunge in the Euro-zone Sentix Investor Confidence index, coming in at -3.7 for February, all along tartly from the previous month's reading of -1.5 and -0.6 received.

With today's scheduled UK macro data out of the pretentiousness, Brexit uncertainties-led weaker sentiment surrounding the Sterling might row as an exclusive driver and continue to boost the irate through Monday's trading session.
#5 - February 04, 2019, 10:55:24 AM

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Trade Balance
Source Ministry for the Economy and Finance (latest release)
Measures Difference in value between imported and exported goods during the reported month;
Usual Effect 'Actual' greater than 'Forecast' is good for currency;
Frequency Released monthly, about 35 days after the month ends;
Next Release Mar 8, 2019
FF Notes A positive number indicates that more goods were exported than imported;
Why Traders
Care Export demand and currency demand are directly linked because foreigners must buy the domestic currency to pay for the nation's exports. Export demand also impacts production and prices at domestic manufacturers;
Also Called Foreign Trade
#6 - February 05, 2019, 08:25:20 PM

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In the Euro-Sterling pair, the Euro is the base currency or the currency that you are buying, while the Pound is the quote currency, or the currency being sold. EUR/GBP shows traders how many Pounds are required to purchase a single Euro. So, if the price of the pair is 0.8900, this means that it costs £0.89 to buy €1. When you see the price increasing on the chart, it could mean one of three things. It could mean that the Euro is strengthening, that the Pound is weakening, or that both are happening simultaneously. Some traders will apply various forms of technical analysis to their charts to make EUR/GBP forecasts. Whether you look at price patterns or fundamental news events, the chart can give you a sense of current trends
#7 - February 05, 2019, 09:04:58 PM

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EUR GBP if observed fundamentally will still tend to be bearish as the GBPB breaksit affects
#8 - February 06, 2019, 04:42:51 AM

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EUR/GBP: Value of bullish bets has surged in the last 2.5 weeks

Investors are expecting EUR/GBP to rise on account of Brexit uncertainty, risk reversals indicate. 
EUR/GBP risk reversals, a gauge of calls to puts, is currently trading in favor of calls (bullish bets) at 0.75 vs zero on Jan. 21. The near 90-degree rally represents a sharp rise in the demand or implied volatility premium for the call option on the EUR/GBP pair. 
A call option gives the holder a right but not obligation to buy the underlying at a predetermined price on or before a predetermined date. 

#9 - February 08, 2019, 06:54:43 AM

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EUR/GBP comes under subsidiary pressure roughly 0.8750

    The enlarged atmosphere re the Sterling is weighing concerning the gnashing your teeth today.
    GBP has managed to revert the codicil-BoE sell-off approximately Thursday.
    The BoE scratch bump forecasts highlighted Brexit uncertainty.

The British Pound is extending the recovery behind the BoE-led sell-off after the banks meeting as regards Thursday, dragging EUR/GBP to the 0.8730/25 band, where it found some decent retention for the epoch monster.

EUR/GBP always focused re Brexit

The European gnashing your teeth is retreating for the third session in an argument at the decrease of the week, giving away a proposed a cent facilitate on weekly peaks near 0.8820 recorded harshly speaking Tuesday.

The Sterling managed to revert the brilliant drop behind the BoEs change yesterday, partly after the central bank met markets expectations of a dovish statement and partly in the entry to rising hopes of a pure result from PM Mays negotiations. In this regard, PM T.May is customary to meet her Irish peer T.Varadkar this evening in the Emerald Isle.

Regarding the BoE business, it is worth recalling that the bank left rates and QE are unchanged, in lineage like prior surveys. At its Inflation Report, the BoE revised lower its forecasts for economic tally happening together and inflation going as regards for the backing of increasing Brexit uncertainty.
#10 - February 10, 2019, 03:40:29 AM

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GBP/USD rises additional to the 1.2900 places, trims weekly losses

The cable extends gains tardy in checking account to Friday, yet all along for the week. 
China-US talks, Brexit, FOMC minutes and UK jobs numbers to be key drivers bearing in the mind-door week. 

The US dollar pulled urge taking into account than the suggestion to supplement during Fridays American session, pushing GBP/USD to the 1.2900 places. Cable hit a 2-day high at 1.2895 and it was virtually to fade away the week hovering on the order of 1.2885, a daily profit of re a hundred pips but 50 pips sedated the level it had a week ago. 

The Brexit uncertainty and the exterminating of the UK Prime Minister in House of Commons were the major drivers of the push sentiment on the intensity of the p.s. a week and Brexit headlines are poised to remain the major factor of the currency influence in the upcoming week as quickly, said Mario Blascak, FXStreet's European Chief Analyst.

Data from the US and the UK on the culmination of the week showed a polluted sack of numbers. The negative surprises from the US weigh upon the greenback. In the US, adjacent week FOMC minutes are due even if in the UK, labor message figures will be released. China-US talks will continue and moreover the Brexit performing. 

In the UK, gone six weeks to Brexit hours of the day, the focus remains upon the negotiations. While most would have preferred more intensify by now, it is unsurprising that they are dragging me. It is adequate in political negotiations to profit much closer to the deadline in the back
politicians are pleasurable to compromise. PM Theresa May will continue talks considering the EU27 in late February, behind she has afterward promised an accessory Brexit vote, wrote Danske Bank analysts. 

GBP/USD Short-term levels to watch 

Friday's rally could signal some rapid-term bottom for the pair particularly if it manages to rise in addition to above 1.2910. The to the fore-door key resistance is the 1.3000 area. On the downside, under 1.2890 the bearish pressure is likely to augment.
#11 - February 17, 2019, 12:55:33 PM


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