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3 Sep 2015
EUR/GBP keeps range around 0.7350 on ECB, Draghi’s presser eyed
FXStreet (Mumbai) - The cross in the EUR/GBP kept the range near the mid-point of the 0.73 handle, as the shared currency showed little reaction to the latest ECB rate decision which turned out to be a complete non-event, as widely expected.
ECB press conference awaited
Currently, the EUR/GBP pair trades 0.18% higher at 0.7350, largely unchanged post ECB decision. The EUR/GBP cross kept the bid tone intact during the mid-European session mainly on sterling weakness as the EUR/USD pair failed to garner momentum from the ECB outcome.
As widely expected, the ECB Governing Council decided to sit tight on rates for a ninth straight meeting on Thursday, with markets awaiting ECB President Mario Draghi's presser. Europe's benchmark lending rate remains at a record low of 0.05%, while its deposit rate will stay at -0.20%, effectively charging lenders for holding their deposits with the central bank.
On the GBP-side, the pound remains broadly undermined following the release of worse-thn expected UK services PMI report which came in at 27-month low. UK services PMI came in at 55.6 points in August, following the 57.4 seen previously. That's the lowest print since May 2013. Market consensus had bet on a reading of 57.7.
Moving on, attention now turns towards the ECB press conference, with markets now readying for bank President Mario Draghi to serve them his fresh comments on the economy and monetary policy.
EUR/GBP Technical Levels
To the upside, the next resistance is located at 0.7400 levels and above which it could extend gains 0.7423 (Aug 24 High) levels. To the downside immediate support might be located at 0.7323 (Today’s Low) below that at 0.7299 (Sept 1 Low).
ECB press conference awaited
Currently, the EUR/GBP pair trades 0.18% higher at 0.7350, largely unchanged post ECB decision. The EUR/GBP cross kept the bid tone intact during the mid-European session mainly on sterling weakness as the EUR/USD pair failed to garner momentum from the ECB outcome.
As widely expected, the ECB Governing Council decided to sit tight on rates for a ninth straight meeting on Thursday, with markets awaiting ECB President Mario Draghi's presser. Europe's benchmark lending rate remains at a record low of 0.05%, while its deposit rate will stay at -0.20%, effectively charging lenders for holding their deposits with the central bank.
On the GBP-side, the pound remains broadly undermined following the release of worse-thn expected UK services PMI report which came in at 27-month low. UK services PMI came in at 55.6 points in August, following the 57.4 seen previously. That's the lowest print since May 2013. Market consensus had bet on a reading of 57.7.
Moving on, attention now turns towards the ECB press conference, with markets now readying for bank President Mario Draghi to serve them his fresh comments on the economy and monetary policy.
EUR/GBP Technical Levels
To the upside, the next resistance is located at 0.7400 levels and above which it could extend gains 0.7423 (Aug 24 High) levels. To the downside immediate support might be located at 0.7323 (Today’s Low) below that at 0.7299 (Sept 1 Low).