EUR/GBP falls to over 2-week lows post-BoE announcement


   •  BoE decides to hikes interest rates by 25bps to 0.75%.
   •  A unanimous vote provides a minor boost to the GBP.

The EUR/GBP cross extended its retracement slide from the 0.8900 neighborhood and dropped to over two-week low after the latest BoE monetary policy update. 

As was widely expected and already priced in the market, the Bank of England raised its key lending rate by 25 basis points to 0.75%. However, a unanimous vote (9-0) might have surprised market participants and provided a minor bullish lift to the British Pound. 

This coupled with a heavily offered tone around the EUR/USD major exerted some additional downward pressure and further collaborated to the ongoing downfall to mid-0.8800s. 

Further downside, however, seemed limited, at least for the time being, as investors look forward to the BoE's Quarterly Inflation Report and the BoE Governor Mark Carney's comments at the post-meeting presser.

Technical levels to watch

A follow-through selling below 0.8840 immediate horizontal support has the potential to continue dragging the cross further towards testing the 0.8800 handle. On the flip side, 0.8875 level, followed by the 0.8900 handle might now act as immediate resistance levels, above which the cross could aim back towards 0.8955-60 supply zone.
 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

AUD/USD holds rebound near 0.6650, focus shifts to US data, Fedspeak

AUD/USD holds rebound near 0.6650, focus shifts to US data, Fedspeak

AUD/USD is holding steady while consolidating the previous rebound near 0.6650 in Tuesday's Asian trading. The pair fails to capitalize on improved Australian sentiment data and a risk-on mood, as the focus shifts to the US data and Fedspeak for fresh trading impetus. 

AUD/USD News

USD/JPY stays weak below 159.50 amid Japanese verbal intervention

USD/JPY stays weak below 159.50 amid Japanese verbal intervention

USD/JPY is under pressure below 159.50 early Tuesday, as the Japanese Yen benefits from the Japanese verbal intervention. Japan's Hayashi said he will closely monitor the FX moves and take necessary steps. Meanwhile, the US Dollar licks its wounds ahead of sentiment data. 

USD/JPY News

Gold: Sellers return after facing rejection above $2,330

Gold: Sellers return after facing rejection above $2,330

Gold price is back in the red after facing rejection again above $2,330 in Tuesday's Asian trading. Gold price reverses a part of the previous day's rebound even as the US Dollar licks its wounds alongside the sluggish US Treasury bond yields. US data and Fedspeak are on tap. 

Gold News

Bitcoin may be set for a price rebound amid alleged Trump's plan to speak at Bitcoin convention

Bitcoin may be set for a price rebound amid alleged Trump's plan to speak at Bitcoin convention

Bitcoin's price dropped below the $60K level briefly on Monday following news of defunct exchange Mt Gox beginning to pay its creditors in July. However, Santiment data reveals that the recent spike in social volume of the phrase "bottom" could signal a potential price rebound.

Read more

Trading the week ahead

Trading the week ahead

Starting Tuesday, we're watching the Canadian CPI print closely. The Bank of Canada's recent minutes suggested hesitation about the last rate cut, hinting they might delay further cuts. This makes the upcoming inflation data crucial.

Read more

Forex MAJORS

Cryptocurrencies

Signatures