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19 May 2015
EUR/GBP drops to 0.7150
FXStreet (Mumbai) - The EUR/GBP extended losses to hit a session low of 0.7149 as the single currency was ditched across the board on the prospects of the ECB “accelerating” its QE purchases in May, June.
EUR falls, bond yields fall
The benchmark bond yields as well as the shared currency took a beating after the ECB board member Coeure said the bank may “front-load” its QE purchases before summer for seasonal reasons. It means the bank may buy more than its monthly target of EUR 60 billion. The policymaker also expressed a theoretical possibility of deposit rate falling further into the negative territory.
Ahead in the day, the UK CPI data could heavily influence the pair. The UK CPI in April is expected to rebound month-on-month. Meanwhile, on the year, the CPI is expected to stay unchanged at 0.0%.
EUR/GBP Technical Levels
The pair currently trades at 0.7150. The immediate support is located at 0.7139 (May 11 low), under which the pair could drop to 0.7121 (May 13 low). On the other hand, immediate resistance is seen at 0.7170 and 0.72 levels.
EUR falls, bond yields fall
The benchmark bond yields as well as the shared currency took a beating after the ECB board member Coeure said the bank may “front-load” its QE purchases before summer for seasonal reasons. It means the bank may buy more than its monthly target of EUR 60 billion. The policymaker also expressed a theoretical possibility of deposit rate falling further into the negative territory.
Ahead in the day, the UK CPI data could heavily influence the pair. The UK CPI in April is expected to rebound month-on-month. Meanwhile, on the year, the CPI is expected to stay unchanged at 0.0%.
EUR/GBP Technical Levels
The pair currently trades at 0.7150. The immediate support is located at 0.7139 (May 11 low), under which the pair could drop to 0.7121 (May 13 low). On the other hand, immediate resistance is seen at 0.7170 and 0.72 levels.