Analysis and Recommendations (EUR/GBP Analysis Forecast):
The EUR/GBP dipped 19 points as the euro continued to fall after the ECB indicated that they might step up their bond buying program in June. The pair is trading at 0.7165. The Greek government’s parliamentary speaker warning that it will not make a repayment to the International Monetary Fund on June 5 if there is no deal with its creditors by then. Of as much importance may be a discussion at the ECB on Wednesday of whether to trim the life-support it is providing cash-strapped Greek banks.
The euro nursed steep losses early on Wednesday, having suffered a major setback as the European Central Bank looked to accelerate the pace of money printing to buy government bonds over the next two months.
Comments from ECB executive board member Benoit Coeure first sent markets into a flurry. He said the speed of the recent spike in bond yields was worrisome and that the ECB could “moderately” increase its buying in May and June so that it did not fall below its monthly buying target.
ForexTraq provides in-depth analysis for each currency and commodity we review in forex trading. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information for EUR/GBP in our weekly reports.
EUR/GBP Technical Analysis Forecast
Currently EUR/GBP is below 30 and 100 days EMA and in down trend. 0.7115 is the first support level of EUR/GBP. If this support level fails we would see 0.7000 easily. Being in SELL position is recommended as long as EUR/GBP is below 30 days EMA which would be 0.724 levels for a while. Traders to be in long positions should wait for 0.724 over break.
Support And Resistance Levels Of EUR/GBP For 21 May
Today’s economic releases actual vs. forecast:
|AUD||RBA Assist Gov Lowe Speaks|
|JPY||GDP (YoY) (Q1)||2.4%||1.5%||1.1%|
|JPY||GDP (QoQ) (Q1)||0.6%||0.4%||0.3%|
|AUD||Westpac Consumer Sentiment (May)||6.4%||-3.2%|
|EUR||German PPI (MoM) (Apr)||0.1%||0.2%||0.1%|
|GBP||BoE MPC vote cut (May)||0||0||0|
|GBP||BoE MPC vote hike (May)||0||0||0|
|GBP||BoE MPC vote unchanged (May)||9||9||9|
|GBP||BoE MPC Meeting Minutes|
Upcoming Economic Events that you should be monitoring for EUR/GBP in forex trading:
Thursday, May 21, 2015
|CNY||HSBC Manufacturing PMI||49.3||48.9|
|EUR||German Manufacturing PMI||52.3||52.1|
|GBP||Retail Sales (MoM) (Apr)||0.4%||-0.5%|
|USD||Existing Home Sales (Apr)||5.24M||5.19M|
|USD||Philadelphia Fed Manufacturing||8.0||7.5|
Government Bond Auctions
Date Time Country
May 21 08:30 Spain Auctions Bonos
May 21 09:03 Sweden Holds bond exchange auction
May 21 09:10 France Auctions BTANs
May 21 09:30 UK Auctions 4.75% 2030 Conventional Gilt
May 21 10:10 France Auctions
May 21 15:30 Italy Announces details of CTZ/BTPei on 26 May
May 21 15:00 US Announces details of 2-year FRN on 27 May, plus 2/5/7 year
May 21 17:00 US Auctions 10-year TIPs
May 22 09:03 Sweden Holds bond exchange auction
May 22 10:00 Norway Details bond auction on 27 May
EUR/GBP analysis forecast
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