EUR/GBP Steadies, Does Not Avoid New Low
EUR/GBP - H4
The pair shed around 6% during the past year, with monetary policy working against it. The Bank of England hiked rates in December, after much drama, while the ECB is on the dovish side, despite announcing a reduction in its asset purchases from March.
The last month ended with losses and the new year started in similar fashion, culminating to nearly two-year lows at the start of the day. This has opened the door towards the 2020-2019 lows (0.8281-74), but it may not be yet the time for such moves.
The common currency catches a breath today and the drop seems a bit overextended. As such, it may find the opportunity to push for the 0.8379 handle, but a catalyst would be required for new monthly highs (0.8420), while the upside contains many roadblocks.
Past Performance: Past Performance is not an indicator of future results.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.