News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
Bullish
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • USD/JPY strengthening during trade, adding to an impressive run for the Dollar/Yen pair in 2021 https://t.co/xHRuS8D2i0
  • Commodities Update: As of 19:00, these are your best and worst performers based on the London trading schedule: Silver: -0.21% Oil - US Crude: -0.21% Gold: -1.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/4hoyPt34ex
  • The latest CFTC positioning data for the week ending March 2nd saw speculators continue to unwind their US Dollar net shorts. Get your market update from @JMcQueenFX here:https://t.co/S3Kx4OBphE https://t.co/fejOV0AXYv
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.43%, while traders in Germany 30 are at opposite extremes with 80.92%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/klgOuNPYtk
  • Indices Update: As of 19:00, these are your best and worst performers based on the London trading schedule: Wall Street: 1.45% US 500: 0.20% France 40: -0.10% Germany 30: -0.25% FTSE 100: -0.33% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/umSIPmSxrY
  • $EURCAD has continued to head lower today, now trading right around the 1.5000 level. The pair hit a fresh one-year low, currently trading at its lowest level since early March of last year. $EUR $CAD https://t.co/Oj9JYasyTU
  • US Indices are rebounding from last week's sell off today. The Dow is leading the way, rising to a fresh all-time high. The Nasdaq remains negative for the day. DOW +2.00% NDX -0.55% SPX +0.91% RUT +1.70% $DIA $QQQ $SPY $IWM
  • Another look at the deviation in 'internal' interest in US equities: the candle is the Nasdaq 100 to S&P 500 ratio ($NDX-$SPX) overlaid with the S&P 500 itself in blue https://t.co/m2WK4Q2Bs5
  • A notable deviation in direction from the tech-heavy Nadex composite (candle) overlaid with the S&P 500 in blue. The 5-day correlation is still holding up but will start deviating fast at this pace https://t.co/VYY5imk1yS
  • $USD has been pretty strong over the past couple of weeks and to a lesser degree, so far in 2021 but we've only retraced about 23.6% of that massive sell-off that started last March $DXY https://t.co/t5KRSYu0TP
EURGBP - Pending Short as 200-DMA Nears 

EURGBP - Pending Short as 200-DMA Nears 

Nick Cawley, Strategist

Check out our New Trading Guides: they’re free and have been updated for the second quarter of 2018

EURGBP Bounce Opening a Short Trade Opportunity

Two weak currencies battling it out for dominance in a trading pair often opens the door for a short-term trading opportunity, especially after a sharp move. Both the ECB and the BoE are currently unable to proceed with any kind of monetary tightening as inflation stymies policy normalization. While UK interest rates are being pushed further back – an August 0.25% rate hike is currently priced around 42.5% - and may not happen at all this year, the first interest rate hike in the Euro-Zone is not likely until mid-2019 at the earliest and even then, it is likely to be 0.10%. In addition, with Euro-Zone growth slowing down and inflation remaining stubbornly below target (near to 2%), the ECB are likely to extend their bond buying program when it ends at the end of September for at least three months, keeping monetary policy looser for longer.

On the charts EURGBP is now nearing its most expensive level since September 2017 readings, according to the relative strength indicator and is nearing its 200-day moving average which it rejected twice in the last week.

Looking at EURGBP, today’s sharp jump in the pair – after the BOE MPC meeting – may offer an opportunity to short EURGBP. We look to open the position just above the 200-day moving average, currently at 0.88315 and will place a stop just above the intersection with the short-term upward channel at 0.89000. Our first target is the recent double low at 0.86820 with our second target at the April 17 low at 0.86200.

Chart: EURGBP Daily Price Chart (April 2017 – May 10, 2018)

EURGBP - Pending Short as 200-DMA Nears 

Entry Point: 0.88315.

Target 1: 0.86820 – Recent double low.

Target 2: 0.86200 – April 17 low.

Stop-Loss: 0.89000

--- Written by Nick Cawley, Analyst

To contact Nick, email him at nicholas.cawley@ig.com

Follow Nick on Twitter @nickcawley1

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES