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22 Apr 2015
EUR/GBP: range play continues
FXStreet (Mumbai) - The EUR/GBP pair trades at 0.7188 as the gains were once again capped above 0.72 due to the ongoing Greece issue. The pair has been stuck in the range of 0.7220-0.7160 since mid April.
GBP supported by yield spread
The British Pound has been a beneficiary of a relatively resilient UK Gilt yield amid the drop in the core Eurozone nation’s bond yields to record low. The German 10-year yield hit a record low of 0.049% last week. Moreover, the drop in the German yields to near zero or negative level forces investors to look for high yielding assets out of the Eurozone.
Meanwhile, the BOE minutes due for release today could influence the pair. The minutes are likely to show a unanimous vote for holding interest rates at record lows.
EUR/GBP Technical Levels
The immediate resistance is located at 0.7222, above which gains could be extended to 0.7243 (50-DMA). On the flip side, a break below 0.7162 (Apr. 16 low), under which losses could be extended to 0.7110-0.71 levels.
GBP supported by yield spread
The British Pound has been a beneficiary of a relatively resilient UK Gilt yield amid the drop in the core Eurozone nation’s bond yields to record low. The German 10-year yield hit a record low of 0.049% last week. Moreover, the drop in the German yields to near zero or negative level forces investors to look for high yielding assets out of the Eurozone.
Meanwhile, the BOE minutes due for release today could influence the pair. The minutes are likely to show a unanimous vote for holding interest rates at record lows.
EUR/GBP Technical Levels
The immediate resistance is located at 0.7222, above which gains could be extended to 0.7243 (50-DMA). On the flip side, a break below 0.7162 (Apr. 16 low), under which losses could be extended to 0.7110-0.71 levels.