Forex Marketz Daily Forex News – Fully Markets Update
Overnight, the euro currency fell lower after the European Central Bank monthly monetary policy and interest rate announcement. The benchmark EUR/GBP currency exchange rate dipped below a rising trend line as well as the twenty (20) day simple moving average.
The weakness was pervasive with the euro currency throughout the Forex markets, but really started after European Central Bank President Christine Lagarde’s press conference. The EUR/GBP fell to its lowest price level since 19 August at 0.8523.
As was expected, the European Central Bank made no changes with interest rates, however, the ECB did decrease their monthly Pandemic Emergency Purchase Program (PEPP) for the fourth quarter.
While the reduction with the European Central Bank’s Pandemic Emergency Purchase Program was not too shocking and close to what the financial markets expected, Ms. Lagarde’s press conference was fairly predictable.
Today, Germany will publish their monthly consumer price index. The United Kingdom will release monthly gross domestic product (GDP) data as well as monthly industrial and manufacturing production numbers.
The United States will publish monthly factory gate prices. This is more commonly known as the producer price index (PPI). The U.S. will also release weekly active crude oil rig data from the industry group member Baker Hughes.
Daily Euro Currency Technical Analysis (EUR/GBP)
Looking at the above daily MT 4 price action chart, the euro currency is now trading below a key rising trend line as well as the 20 day simple moving average. This is the first time in a month that the EUR/GBP Forex market has fallen below the 20 day simple moving average.
Immediate technical support lines up at 0.8530 with the next downside barrier lining up at 0.8570. The next layer of technical support comes into play at 0.85.
On the upside, the first layer of technical resistance 0.8560 with 0.8612 then coming into play. The upside barrier of 0.8620 then comes into focus.
