1 Jul 2015
EUR/GBP: The full load down on Greece and price action
FXStreet (Guatemala) - EUR/GBP is currently trading at 0.7098 with a high of 0.7129 a low of 0.7059.
EUR/GBP has closed the London session below the 0.71 handle and highs made in the European opening trade that penetrated through the figure and made for a better bid cross until gradual supply and convincing offers emerged throughout the course of the day in Europe and mid day London. Demand came in again in the US and London afternoon but struggled to break the 0.71 handle again.
EUR/GBP price action
EUR/GBP was offered in Asia from the sideways handover whee the price left the vicinity of the 00.71 handle down to 0.7059 as Europe took the baton up to 0.7128. The cross was then in gradual supply down to 0.7076, consolidated there before London mid day demand and US opening took us to 0.7106 before supply drifted to 07091 and a small bid to current levels.
EUR/GBP fundamentals; no more EU/Greek meetings
The referendum remains scheduled to take place this weekend. Athens put forward a new proposal to the creditors yesterday of a 2-year bailout program that will not include the IMF. Today, a letter was leaked where Tsipras supposedly accepted most troika conditions. Meanwhile, Greece’s prime minister Alexis Tsipras has already addressed the nation on live TV when he confirmed that Sunday’s referendum is still on. He continues to urge the people to vote ‘NO’. Meanwhile, Eurogroup President, ">Jeroen Dijsselbloem said that there is "little chance" that any progress will be made in the Greek negotiations after controversial comments from Prime Minister Tsipras during today’s' speech.
There has been a conference call that has ended just now and it has been said by an ECB official that there will no other meetings that are planned before this sundays referendum.
From the calendar, yesterday's CPI's in Europe were in line while UK GDP q/q also came in line. Year on Year UK GDP printed better than expectations at 2.5% vs actual 2.9%. today, UK's Markit Manufacturing PMI (Jun) was missing expectations at 52.5 vs actual 51.4 wobbling the pound. EZ Markit Manufacturing PMI (Jun) were in line at 52.5. BoE's Carney sees lower risks stemming from high debt and lower inflation.
EUR/GBP testing 0.72 support
EUR/GBP has had a volatile round turn around on the pivotal point of the sideways channel that has been in motion since the open this week extending from June 23rd price action. The 55 DMA was a heavy psychological barrier just above the 0.72 handle last week at highs of 0.7212 and the upside failed within the descending resistance line at 0.7210/50. Support still comes at the 0.71 handle here. Karen Jones, chief analyst at Commerzbank suggests that failures through 0.6985/0.7080 will target the 0.6571/41 2007 low.
EUR/GBP has closed the London session below the 0.71 handle and highs made in the European opening trade that penetrated through the figure and made for a better bid cross until gradual supply and convincing offers emerged throughout the course of the day in Europe and mid day London. Demand came in again in the US and London afternoon but struggled to break the 0.71 handle again.
EUR/GBP price action
EUR/GBP was offered in Asia from the sideways handover whee the price left the vicinity of the 00.71 handle down to 0.7059 as Europe took the baton up to 0.7128. The cross was then in gradual supply down to 0.7076, consolidated there before London mid day demand and US opening took us to 0.7106 before supply drifted to 07091 and a small bid to current levels.
EUR/GBP fundamentals; no more EU/Greek meetings
The referendum remains scheduled to take place this weekend. Athens put forward a new proposal to the creditors yesterday of a 2-year bailout program that will not include the IMF. Today, a letter was leaked where Tsipras supposedly accepted most troika conditions. Meanwhile, Greece’s prime minister Alexis Tsipras has already addressed the nation on live TV when he confirmed that Sunday’s referendum is still on. He continues to urge the people to vote ‘NO’. Meanwhile, Eurogroup President, ">Jeroen Dijsselbloem said that there is "little chance" that any progress will be made in the Greek negotiations after controversial comments from Prime Minister Tsipras during today’s' speech.
There has been a conference call that has ended just now and it has been said by an ECB official that there will no other meetings that are planned before this sundays referendum.
From the calendar, yesterday's CPI's in Europe were in line while UK GDP q/q also came in line. Year on Year UK GDP printed better than expectations at 2.5% vs actual 2.9%. today, UK's Markit Manufacturing PMI (Jun) was missing expectations at 52.5 vs actual 51.4 wobbling the pound. EZ Markit Manufacturing PMI (Jun) were in line at 52.5. BoE's Carney sees lower risks stemming from high debt and lower inflation.
EUR/GBP testing 0.72 support
EUR/GBP has had a volatile round turn around on the pivotal point of the sideways channel that has been in motion since the open this week extending from June 23rd price action. The 55 DMA was a heavy psychological barrier just above the 0.72 handle last week at highs of 0.7212 and the upside failed within the descending resistance line at 0.7210/50. Support still comes at the 0.71 handle here. Karen Jones, chief analyst at Commerzbank suggests that failures through 0.6985/0.7080 will target the 0.6571/41 2007 low.