Today, we got a double dose of central bank risk from the Bank of England and the European Central Bank. While the BoE stayed pat, the ECB cut rates and signaled more stimulus measures such as buying of asset-backed-securities (ABS), as well as considering QE. Let’s take a look at the EUR/GBP after today’s key fundamental risk.
The EUR/GBP was choppy, but after the central bank statements, it looks like the result will be bearish. Price should now stay below 0.7960, and push toward 0.7875. A break below 0.7870 should then open up the 2012-low at 0.7744.
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