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4 May 2015
EUR/GBP: Building up for the UK elections
FXStreet (Guatemala) - EUR/GBP is currently trading at 0.7368 with a high of 0.7402 and a low of 0.7351.
EUR/GBP is moving sideways with 0.7350 as a base for the time being while markets adjust to the change in themes and sentiment as the UK elections leave plenty of uncertainty throughout. Analysts at TD Securities explained that EUR/GBP has additional upside momentum for the cross through 0.7385 (targets a quick rise to 0.7475).
The analysts explained that in the short-term, and under the assumption that the election does not provide a “clean” outcome, they expect GBP to underperform against most crosses. "The GBP has under-performed versus most of its G-10 peers in the past week, suggesting that there has been some pre-election positioning, and it should be noted that a pre-vote dip might be deepened by this week’s UK data which we think is likely to disappoint—including the April Services PMI where we expect a dip to 58.0 or even lower from 58.9 (market: 58.5)."
Karen Jones, chief analyst at Commerzbank explained that EUR/GBP has risen all the way to the 38.2% Fibonacci retracement at 0.7416 which caps. "A close above here is needed to confirm that the market has based medium term."
EUR/GBP is moving sideways with 0.7350 as a base for the time being while markets adjust to the change in themes and sentiment as the UK elections leave plenty of uncertainty throughout. Analysts at TD Securities explained that EUR/GBP has additional upside momentum for the cross through 0.7385 (targets a quick rise to 0.7475).
The analysts explained that in the short-term, and under the assumption that the election does not provide a “clean” outcome, they expect GBP to underperform against most crosses. "The GBP has under-performed versus most of its G-10 peers in the past week, suggesting that there has been some pre-election positioning, and it should be noted that a pre-vote dip might be deepened by this week’s UK data which we think is likely to disappoint—including the April Services PMI where we expect a dip to 58.0 or even lower from 58.9 (market: 58.5)."
Karen Jones, chief analyst at Commerzbank explained that EUR/GBP has risen all the way to the 38.2% Fibonacci retracement at 0.7416 which caps. "A close above here is needed to confirm that the market has based medium term."