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1 Oct 2013
EUR/GBP mixed on poor data
FXstreet.com (Barcelona) - EUR/GBP has printed a high of 0.8365 and a low of 0.8332, currently trading at 0.8346 at the time of writing.
Research teams at TD Securities said, “Beyond the US government shutdown issue, the ECB policy meeting takes places on Wednesday this month, avoiding a national holiday in Germany. The meeting will actually take place in Paris. We look for the ECB to underscore its dovish bias due to 1) the firm exchange rate and uncertainty prompted by Italian politics representing headwinds for the growth outlook and 2) recent data releases reflecting weaker than expected inflation and pronounced weakness in credit growth (final September PMI reported at 51.1, down modestly from August’s 51.4). No new policy initiatives are expected, however—the “external” location of the meeting means that significant announcements are unlikely—but the door for more policy accommodation is likely to be left open”. In Germany, this morning, the unemployment rate came in worse and the change was a difference in expectations of 30k. For the UK, Markit Manufacturing PMI printed poorly at 56.7 vs 57.3 expected.
EUR/GBP Levels
The 20 DMA is 0.8414, the 50 DAM is 0.8526 and the 200 DMA is 0.8510. Supports are ascending from 0.8266, 0.8286 and 0.8326. Spot is currently 0.8346 while resistance are 0.8405, 0.8429, 0.84 49 and 0.8475.
Research teams at TD Securities said, “Beyond the US government shutdown issue, the ECB policy meeting takes places on Wednesday this month, avoiding a national holiday in Germany. The meeting will actually take place in Paris. We look for the ECB to underscore its dovish bias due to 1) the firm exchange rate and uncertainty prompted by Italian politics representing headwinds for the growth outlook and 2) recent data releases reflecting weaker than expected inflation and pronounced weakness in credit growth (final September PMI reported at 51.1, down modestly from August’s 51.4). No new policy initiatives are expected, however—the “external” location of the meeting means that significant announcements are unlikely—but the door for more policy accommodation is likely to be left open”. In Germany, this morning, the unemployment rate came in worse and the change was a difference in expectations of 30k. For the UK, Markit Manufacturing PMI printed poorly at 56.7 vs 57.3 expected.
EUR/GBP Levels
The 20 DMA is 0.8414, the 50 DAM is 0.8526 and the 200 DMA is 0.8510. Supports are ascending from 0.8266, 0.8286 and 0.8326. Spot is currently 0.8346 while resistance are 0.8405, 0.8429, 0.84 49 and 0.8475.