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22 Apr 2015
EUR/GBP points to 0.71-0.73 range – Westpac
FXStreet (Edinburgh) - According to strategists at Westpac, the European cross could range bound between 0.71 and 0.73 in the near term.
Key Quotes
“EUR/GBP likely to flatline for more weeks yet, torn between bearish forces such as ongoing ECB QE and Greek worries on the one hand and bullish forces on the other side of the ledger, most notably the very real risk of an inconclusive UK general election result in just over two weeks”.
“EUR/GBP looks like a 0.71-0.73 trade for now”.
“The model is neutral GBP here after running with moderate sized shorts for a couple months”.
“Our growth and valuation signals are constructive GBP but yield and a poor external balance signal remain problematic for GBP”.
“Last week’s impulsive upward reversal coincides with a MT momentum failure at recent multi-year lows. While the downtrend is yet to break, this is a significant warning”.
Key Quotes
“EUR/GBP likely to flatline for more weeks yet, torn between bearish forces such as ongoing ECB QE and Greek worries on the one hand and bullish forces on the other side of the ledger, most notably the very real risk of an inconclusive UK general election result in just over two weeks”.
“EUR/GBP looks like a 0.71-0.73 trade for now”.
“The model is neutral GBP here after running with moderate sized shorts for a couple months”.
“Our growth and valuation signals are constructive GBP but yield and a poor external balance signal remain problematic for GBP”.
“Last week’s impulsive upward reversal coincides with a MT momentum failure at recent multi-year lows. While the downtrend is yet to break, this is a significant warning”.