EUR/GBP has another go at 0.89 handle

EUR/GBP peeps above 0.8903 (100-day MA).
Hawkish ECB keeps EUR well bid.

Omkar Godbole FXStreet Contributor

ECB December meeting minutes released yesterday stressed the need for forward guidance to evolve gradually if the economy continues to expand and inflation rises further toward the Governing Council’s aim. The minutes also said that forward guidance could be revisited early in 2018.

The market responded by sending EUR higher across the board. EUR/GBP jumped to a high of 0.8912 yesterday before closing the day at 0.8885. However, the pair regained bid tone about an hour ago and moved to a session high of 0.8908.

As of writing, the cross is trading above the downward sloping 100-day MA of 0.8903, but struggling to build momentum. Moreover, most analysts are calling for caution on the part of the EUR bulls as ECB could always postpone policy tightening if the economy does not hold up as expected.

EUR/GBP Technical Levels

A close above 0.8924 (Jan. 4 high) could yield a rally to 0.8982 (Nov. 28 high) and 0.90 (zero levels). On the downside, breach of support at 0.8882 (session low) would shift risk in favor of a deeper pullback to 0.8855 (50-day MA) and 0.8826 (200-day MA).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bullish	Neutral	High
1H		Neutral	Low
4H	Bearish	Overbought	Expanding
1D	Bullish	Neutral	Low
1W	Bullish	Neutral	Low
Updated Jan 12, 07:45 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD struggles near 1.1850, with all eyes on US CPI data

EUR/USD holds losses while keeping its range near 1.1850 in European trading on Friday. A broadly cautious market environment paired with a steady US Dollar undermines the pair ahead of the critical US CPI data. Meanwhile, the Eurozone Q4 GDP second estimate has little to no impact on the Euro.

GBP/USD recovers above 1.3600, awaits US CPI for fresh impetus

GBP/USD recovers some ground above 1.3600 in the European session on Friday, though it lacks bullish conviction. The US Dollar remains supported amid a softer risk tone and ahead of the US consumer inflation figures due later in the NA session on Friday.

Gold remains below $5,000 as US inflation report looms

Gold retreats from the vicinity of the $5,000 psychological mark, though sticks to its modest intraday gains in the European session. Traders now look forward to the release of the US consumer inflation figures for more cues about the Fed policy path. The outlook will play a key role in influencing the near-term US Dollar price dynamics and provide some meaningful impetus to the non-yielding bullion.

US CPI data set to show modest inflation cooling as markets price in a more hawkish Fed

The US Bureau of Labor Statistics will publish January’s Consumer Price Index data on Friday, delayed by the brief and partial United States government shutdown. The report is expected to show that inflationary pressures eased modestly but also remained above the Federal Reserve’s 2% target.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Solana Price Forecast: Mixed market sentiment caps recovery

Solana (SOL) is trading at $79 as of Friday, following a correction of over 9% so far this week. On-chain and derivatives data indicates mixed sentiment among traders, further limiting the chances of a price recovery.