EURGBP, H4
Today, the dollar saw fresh highs versus the euro, which remained under general pressure, and remained generally underpinned against most other currencies. The euro is presently showing a 0.3% loss versus the dollar, a 0.4% decline versus sterling and a 0.1% fall in the case against the yen. The declines built on losses seen after yesterday’s Reuters report that the ECB is not intending to shift out of its prevailing dovish guidance at next month’s policy meeting. This message has been backed up by ECB officials today pushed back against rate hike speculation with Praet, Nowotny and Liikanen all effectively confirming that the dovish guidance remains in place.
A combo of ECB-speak and Eurozone data maintained pressure on the common currency with weaker than expected ESI confidence data and German inflation dropping sharply in March. After Spanish headline HICP already came in weaker than anticipated, the German headline rates also dropped much more than anticipated and the HICP rate now stands at just 1.5% y/y, pulling back from 2.2% y/y in February.
Euro weakness after Eurozone data, drifted EURGBP pair to last week lows at 0.8609. In the 4-hour chart, the pair broke the significant 200 EMA earlier, while a break of the lower Bollinger band indicates a further weakness. Currently the pair traded at 0.8616 hence a break of the lower Bollinger bands is possible to drive the pair near to 50.0 Fibonacci level at 0.8570-0.8590 area. Additionally, the turn of Parabolic SAR yesterday and the fact that RSI is at 37 sloping down, confirms the signs of further weakness for EURGBP. However in long term basis, pound still consider to be risky due to the long divorcing process commences.
Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.
Recommended Content
Editors’ Picks
EUR/USD holds above 1.0700 ahead of key US data
EUR/USD trades in a tight range above 1.0700 in the early European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays above 156.00 after BoJ Governor Ueda's comments
USD/JPY holds above 156.00 after surging above this level with the initial reaction to the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.