EUR/GBP reverses a dip to multi-day lows, back above mid-0.8800s post-ECB


   •  ECB maintains status-quo and leaves interest rates unchanged, as was expected.
   •  The central bank now sees rates to stay at current levels at least through 1H 2020.
   •  TLTRO pricing interpreted as hawkish decision and provides a minor lift to the EUR.

The EUR/GBP cross quickly reversed a dip to fresh session tops and rallied around 25-30 pips after the latest ECB monetary policy update.

As was widely expected, the European Central Bank (ECB) maintained status-quo and left interest rates unchanged at the conclusion of its June monetary policy meeting held this Thursday. In the accompanying monetary policy statement, the central bank now sees interest rates at present levels at least through 1H 2020. 

The change in the forward guidance was rather dovish but the rate applied for the TLTRO turned out to be the biggest surprise and interpreted as a hawkish decision. The central bank said that TLTRO rate can be as low as deposit facility +10 bps as against consensus for somewhere around deposit rate -20 bps.

The shared currency rallied across the board, albeit a modest pickup in the demand for the British Pound kept a lid on any strong follow-through ahead of the post-meeting press conference, where comments by the ECB President Mario Draghi might infuse some fresh volatility and produce some meaningful trading opportunities. 

Technical levels to watch

EUR/GBP

Overview
Today last price 0.8853
Today Daily Change 0.0007
Today Daily Change % 0.08
Today daily open 0.8846
 
Trends
Daily SMA20 0.8779
Daily SMA50 0.8677
Daily SMA100 0.8673
Daily SMA200 0.8785
Levels
Previous Daily High 0.888
Previous Daily Low 0.8841
Previous Weekly High 0.8876
Previous Weekly Low 0.879
Previous Monthly High 0.8876
Previous Monthly Low 0.8489
Daily Fibonacci 38.2% 0.8856
Daily Fibonacci 61.8% 0.8865
Daily Pivot Point S1 0.8831
Daily Pivot Point S2 0.8817
Daily Pivot Point S3 0.8793
Daily Pivot Point R1 0.887
Daily Pivot Point R2 0.8894
Daily Pivot Point R3 0.8908

 

 

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