Friday, October 23, 2015

EUR/GBP: sellers keep pressures below 200 DMA

FXStreet (Guatemala) - EUR/GBP remains on the lows post the ECB dovishness that came of the European session and threatens further downside without a a recovery in sight so far.

The main take away from Draghi is that it seems as though December is on the card for additional easing on one form or another, or many forms for that matter.

The are still major concerns over China and emerging markets and a degree of accommodation will need to be re-examined at the December meeting is what he said.The interest rate decision came before the presser with the ECB staying on hold as widely expected.

The main refi rate unchanged at 0.05%, also the deposit rate unchanged -0.20% and the marginal lending rate unchanged 0.30%.Draghi later explained that the recovery is continuing as it was in 2nd quarter of this year driven by domestic consumption. However lower oil prices and monetary policy were easing the gales of the headwinds from external countries. Meanwhile, sterling got a lift with better than expected retail sales figures and Carney was debating timings of a rate hike in the cross over to 2016.

Draghi on inflation

EUR/GBP levels

Technically, 0.7492 is a key target to the upside although price direction took out the 55 and 200 day ma at 0.7299/55 levels. Below here are the September lows at 0.7198.
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