Friday, October 30, 2015

EUR/GBP testing lows near 0.7160

FXStreet (Edinburgh) - After a brief test of the 0.7180 area, EUR/GBP has now returned to the 0.7160/55 band ahead of the European open.

EUR/GBP attention to EMU’s CPI

Absent releases in the UK economy, EMU’s preliminary inflation figures will take centre stage later in the session. Market consensus expects consumer prices to come in flat on a yearly basis, while the Core print is seen at 1.9%, matching September’s reading.

In the meantime, the cross is trying to consolidate the recent drop from the mid-0.7200s following the FOMC meeting on Wednesday, while the possibility that the ECB could incur in further easing in December continues to linger.

EUR/GBP relevant levels

As of writing the cross is losing 0.11% at 0.7163 facing the next hurdle at 0.7215 (50% Fibo of 0.6935-0.7496) followed by 0.7243 (200-day sma) and then 0.7313 (55-day sma). On the flip side, a breach of 0.7100 (psychological level) would aim for 0.7067 (23.6% Fibo of 0.6935-0.7496) and finally 0.6934 (2015 low Jul.17).
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