Short-Term Forex Technical Outlook: EUR/GBP.Political tensions in the U.K. weighed on the British pound during the previous week, and pushed the EUR/GBP higher to retrace the sell-off from the end of May, and the pair may continue to advance over the near-term as investors weigh the outlook for future policy. Currency Pair: EUR/GBP Chart: 60 Min Charts Short-Term Bias: Flat Analysis Political tensions in the U.K. weighed on the British pound during the previous week, and pushed the EUR/GBP higher to retrace the sell-off from the end of May, and the pair may continue to advance over the near-term as investors weigh the outlook for future policy. After reaching a low of 0.8233 on 11/28, the EUR/GBP surged to a high of 0.9805 in December as the Bank of England Bank of England, central bank and note-issuing institution of Great Britain. Popularly known as the Old Lady of Threadneedle Street, its main office stands on the street of that name in London. lowered the benchmark interest rate Benchmark interest rate
Also called base interest rate, it is the minimum interest rate investors will demand for investing in a non-Treasury security. It is also tied to the yield to maturity offered on the comparable-maturity treasury security that was most recently issued (on-the-run). at a record pace however, Credit Suisse The Credit Suisse Group (SWX:CSGN, NYSE: CS) is a financial services company, headquartered in Zürich, Switzerland. It is the second-largest Swiss bank, behind UBS AG. overnight index swaps Overnight Index Swap
An interest rate swap involving the overnight rate being exchanged for some fixed interest rate.
Generally short-term, the interest of the overnight rate portion of the swap is compounded and paid at maturity. show investors expect the central bank to tighten policy over the medium-term, and forecasts the BoE to increase the interest rate over the next 12 months. As a result, we may see the pound continue to hold a bullish tone against its currency counterparts as investors raise bets for higher borrowing costs in the U.K., and the euro-pound may continue to fall lower to retrace the advance from the previous year. Over the next few hours of trading, we are likely to see the EUR/GBP fall back below 0.8700 to fill-in the gap from the 120 SMA (1) See SMA connector.
(2) (Shared Memory Architecture) See shared video memory.
(3) (Software Maintenance Association) A membership organization that began in 1985 and ended in 1996. however, as investor confidence in the Euro-Zone is expected to improve for the third consecutive month in June, a jump in the Sentix survey could lead the pair higher to push back above 0.8830-40 (61.8% Fib). Be sure to check out other Technical Reports from DailyFX for additional information on the major currency pairs. To contact the author of this article, please email: email@example.com Related Articles: Weekly Classical Technical Outlook: Broad Based USD USD
In currencies, this is the abbreviation for the U.S. Dollar.
The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. Appreciation Anticipated Over Medium-Term Forex Forex
See: Foreign exchange Trading Weekly Forecast - 06.08.09 Dollar Pullback Underway British Pound Crosses: Confined to Ranges
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