In today’s Forex Forecast, the EUR/USD and EUR/GBP were the subjects of choice for Craig Erlam, Senior Market Analyst for Oanda, when he joined Zak Mir and Mike Ingram on the Tip TV Finance Show.
Mixed views on the EUR/USD
Erlam commented that the pair was an overcrowded short trade, and the market was caught offside as EUR/USD saw upside towards the 1.10 area. He continued that from a technical analysis perspective, the pair looks to be in a bullish step, meanwhile, based on the fundamentals Erlam believed the pair may now be in a new trading range between 1.08 and 1.10. He concluded to keep an eye on the stock, and if the pair was to break 1.10, prepare for more upside.
Stronger Euro and a weaker GBP
In terms of the EUR/GBP, Erlam highlighted the difference in fundamentals, with the Fed looking to hike next week whilst the BoE doesn’t look like hiking for another 12 months. He continued that with a weaker GBP and a stronger Euro for the time being, the pair may be heading towards 0.74.
Watch the video for more analysis on these two currency pairs, as well as the fallout from the ECB meeting and a view on OPEC.
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