Short-Term Forex Technical Outlook: EUR/GBP.Summary: The EUR/GBP surged higher this week to push above the 100-Day moving average for the first time since last October however, the lack of momentum to clear...The EUR/GBP surged higher this week to push above the 100-Day moving average for the first time since last October however, the lack of momentum to clear 0.8750-60 (50.0% Fib) may lead the pair to retrace the four-day rally, and we may see the pair continue to hold a broad range 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 The EUR/GBP surged higher this week to push above the 100-Day moving average for the first time since last October however, the lack of momentum to clear 0.8750-60 (50.0% Fib) may lead the pair to retrace the four-day rally, and we may see the pair continue to hold a broad range over the near-term as investors weigh the outlook for future policy. After reaching a low of 0.7694 in October, the euro-pound 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. took unprecedented steps to stimulate the ailing economy however, as the pair continues to lose steam ahead of 0.8750-60 (50.0% Fib), the pair is likely to hold its current range going into the following month as the BoE and ECB See electronic code book. maintain a dovish policy stance. Nevertheless, 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. Notes: Generally short-term, the interest of the overnight rate portion of the swap is compounded and paid at maturity. show investors anticipate borrowing costs in the U.K. to rise at a faster pace than those in the euro-region as the Governing Council expects economic activity to remain subdued sub·due tr.v. sub·dued, sub·du·ing, sub·dues 1. To conquer and subjugate; vanquish. See Synonyms at defeat. 2. To quiet or bring under control by physical force or persuasion; make tractable. 3. going into the following year, and the pair may fall back towards 0.8500-10 (61.8% Fib) as the interest rate outlook for the U.K. improves. Over the next few hours of trading, we are likely to see the pair fall lower to retrace the rally that carried over from the previous week, and may work its way below 0.8650 to fill-in the gap from the 120-SMA (0.8635) however, as the economic docket is expected to confirm a positive growth reading for Germany, the final 2Q GDP GDP (guanosine diphosphate): see guanine. reading could drive the euro higher against its currency counterparts as the outlook for growth and inflation improves. Be sure to check out other Technical Reports from DailyFX for additional information on the major currency pairs. Visit the DailyFX Forex Forex See: Foreign exchange Stream for Real-Time News and Market Updates To contact the author of this article, please email: dsong@fxcm.com Related Articles: Forex Weekly Trading Forecast - 08.24.09 Japanese Yen “Yen” redirects here. For the other use, see Yen (disambiguation). “JPY” redirects here. For the Australian singer with the same moniker, see John Paul Young. Forecast Bullish on Forex Options Sentiment US Dollar Carving Out Bottom Against Most Major Currencies Dollar Under Pressure as Euro Threatens 2009 Highs 2009 Al Bawaba (Albawaba.com) Provided by Syndigate.info an Albawaba.com company |
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