- Pound among worst performers on Thursday.
- Euro drops versus dollar, remains firm against Swiss franc.
- EUR/GBP is up for the third day in a row, back above the 20-day SMA.
The EUR/GBP is rising for the third day in a row and recently reached a three-day high at 0.8818 before pulling back to 0.8790. A weaker GBP is driving the cross to the upside on Thursday. The cross bottomed on Tuesday at 0.8644, and since then, it had been moving to the upside. It is back above the 20-day Simple Moving Average. The next resistance area is seen at the weekly top around 0.8830, followed by 0.8895. The critical support for the current bias might be seen at 0.8740, an uptrend line from Wednesday’s low.
The euro and the pound are falling versus the dollar, trimming weekly gains. The decline in GBP/USD is faster and is approaching 1.1100, while EUR/USD is moving toward 0.9800. EUR/CHF remains steady near 0.9700.
Market participants see the Bank of England and the European Central Bank on the path of further rate hikes over the coming meetings. Although, the actions from the BoE are not only to curb inflation but also to preserve stability in the gilt market.
The BoE defended on Thursday last week’s interventions in the gilt market, mentioning it prevented a £50bn fire sale of UK bonds that would have led to the brink of a financial crisis. The pound is not yet out of the woods. It remains among the most volatile currencies, and after a sharp recovery, weakness is emerging again.
The minutes of the ECB released on Thursday showed discussions about the magnitude of rate hikes and concerns about the impact of the depreciation of the euro on inflation expectations. “The account of the ECB Council meeting in September point to a growing number of arguments for further significant ECB rate hikes in the near term, while the exact level of the terminal rate remains unclear,” said analysts at Commerzbank.
|Today last price||0.8808|
|Today Daily Change||0.0086|
|Today Daily Change %||0.99|
|Today daily open||0.8722|
|Previous Daily High||0.8777|
|Previous Daily Low||0.8692|
|Previous Weekly High||0.9254|
|Previous Weekly Low||0.8752|
|Previous Monthly High||0.9254|
|Previous Monthly Low||0.8566|
|Daily Fibonacci 38.2%||0.8744|
|Daily Fibonacci 61.8%||0.8724|
|Daily Pivot Point S1||0.8683|
|Daily Pivot Point S2||0.8645|
|Daily Pivot Point S3||0.8598|
|Daily Pivot Point R1||0.8768|
|Daily Pivot Point R2||0.8815|
|Daily Pivot Point R3||0.8854|
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.