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22 Apr 2015
EUR/GBP drops to fresh lows below 0.7180 post BOE minutes
FXStreet (Mumbai) - The British pound fought back its lost ground versus the shared currency in the European session; pushing EUR/GBP tofresh session lows, as the BOE minutes release came in line with expectations offering no new surprise with a unanimous unchanged monetary policy stance.
EUR/GBP falls from 0.7198
Currently, the EUR/GBP cross trades -0.19% lower near fresh session lows at 0.7180 post minutes release. The cross in EUR/GBP turned in red after the pound jumped nearly 20-pips versus the euro after the latest Bank of England (BoE) minutes, all nine Monetary Policy Committee (MPC) members voted in favor of keep rates on hold at 0.5% and unanimously agreed on the amount of QE, which remained at GBP375 billion.
The minutes revealed a slightly better outlook for the UK economy which boosted sterling across the board. "The BoE also sees a faster pickup in inflation once the effect of cheap oil and food drops out of CPI calculations towards the end of this year."
On the other hand, the euro remains lifted against the US dollar amid a weaker greenback which somewhat restricts the downside in the EUR/GBP.
EUR/GBP Levels to consider
To the upside, the next resistance is located at 0.7211 (Today’s High) and above which it could extend gains to at 0.7242 (April 14 High) levels. To the downside immediate support might be located at 0.7161 (April 16 Low) levels below that at 0.7116 (March 17 Low) levels.
EUR/GBP falls from 0.7198
Currently, the EUR/GBP cross trades -0.19% lower near fresh session lows at 0.7180 post minutes release. The cross in EUR/GBP turned in red after the pound jumped nearly 20-pips versus the euro after the latest Bank of England (BoE) minutes, all nine Monetary Policy Committee (MPC) members voted in favor of keep rates on hold at 0.5% and unanimously agreed on the amount of QE, which remained at GBP375 billion.
The minutes revealed a slightly better outlook for the UK economy which boosted sterling across the board. "The BoE also sees a faster pickup in inflation once the effect of cheap oil and food drops out of CPI calculations towards the end of this year."
On the other hand, the euro remains lifted against the US dollar amid a weaker greenback which somewhat restricts the downside in the EUR/GBP.
EUR/GBP Levels to consider
To the upside, the next resistance is located at 0.7211 (Today’s High) and above which it could extend gains to at 0.7242 (April 14 High) levels. To the downside immediate support might be located at 0.7161 (April 16 Low) levels below that at 0.7116 (March 17 Low) levels.