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. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.
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