6 Feb 2014
EUR/GBP edges lower after BoE; ECB eyed
FXStreet (Córdoba) - The EUR/GBP retraced its modest daily advance and fell to marginal new lows after the BoE decision to keep monetary policy on hold.
The Bank of England decided to maintain Bank Rate at 0.5% while keeping the stock of purchased assets financed by the issuance of central bank reserves at £375 billion.
The EUR/GBP dropped from a daily high of 0.8308 to a low of 0.8284 but the move lacked follow-though as the European Central Bank decision comes next. At time of writing, the EUR/GBP is trading at the 0.8290 zone, virtually unchanged since opening.
EUR/GBP outlook
"The EUR/GBP will of course depend in what Draghi says…again a surprise either positive or negative, will affect more the EUR than any other currency, so with no surprises, market reactions will be limited", said Valeria Bednarik, chief analyst at FXStreet. "Immediate support comes at 0.8255, followed by 0.8210 and 0.8170, while resistances stand at 0.8315 and 0.8350 for today".
The Bank of England decided to maintain Bank Rate at 0.5% while keeping the stock of purchased assets financed by the issuance of central bank reserves at £375 billion.
The EUR/GBP dropped from a daily high of 0.8308 to a low of 0.8284 but the move lacked follow-though as the European Central Bank decision comes next. At time of writing, the EUR/GBP is trading at the 0.8290 zone, virtually unchanged since opening.
EUR/GBP outlook
"The EUR/GBP will of course depend in what Draghi says…again a surprise either positive or negative, will affect more the EUR than any other currency, so with no surprises, market reactions will be limited", said Valeria Bednarik, chief analyst at FXStreet. "Immediate support comes at 0.8255, followed by 0.8210 and 0.8170, while resistances stand at 0.8315 and 0.8350 for today".