Forex Marketz Daily Forex News – Fully Markets Update
EUR/GBP: Offered on cable rebounding
FXStreet (Guatemala) – EUR/GBP is currently trading at 0.6938 with a high of 0.6989 and a low of 0.6936.
EUR/GBP bears are testing the six year channel’s base while the euro is weak vs the greenback and sterling is taking back lost ground back on to the 1.56 handle.
The greenback is dominating the FX space with markets searching for yield while progress is being made with Greece towards a third bailout. Yellen offered a more hawkish tone this week in her testimony and that coupled with the US CPI’s today puts the dollar in a good position, weighing on the euro on central bank divergences while at the same time, Carney hinted to rate hikes this week also. “The earliest that the BoE would likely to begin to raise interest rates would be from November, which could even come before the Fed begins to raise interest if they hold out until December,” explained analysts at The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Technically, the cross is in bearish territory while it tests the base of a 6 year channel at 0.6967, and although the picture is looking oversold, this is critical as being the break down point to the 0.6571/41 the 2007 low.
For more information, read our latest forex news.
Source: FXStreet
