Market news

12 October 2021

EUR/GBP consolidates above 0.8480 after rejection from 0.8520

  • The euro returns to 0.8480 area after failure at 0.8520.
  • BoE rate hike expectations are supporting the pound.
  • EUR/GBP is trading above a key support area at 0.8471/49 – Commerzbank.

The euro has found support at 0.8480 area following a reversal from 0.8520 earlier today. Broadly speaking, the pair is licking its wounds, clinging right below 0.8500 after having lost nearly 2% over the previous two weeks.

BoE tightening expectations are supporting the GBP

The British pound has remained fairly firm in October, supported by expectations that the Bank of England will lead the rest of the major central banks in raising interest rates after the COVID-19 crisis. Some market sources are anticipating an interest rate hike early next year, with other hikes to follow, in an attempt to tackle inflationary pressures.

Furthermore, the euro remains on the defensive on rising concerns about inflationary pressures and supply bottlenecks thwarting the post-pandemic recovery. The macroeconomic docket has supported those fears on Tuesday, with the German ZEW economic sentiment index deteriorating for the fifth consecutive month.

EUR/GBP: Above important support at 0.8449 – Commerzbank

According to Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, breach of 0.8471/49 support would renew bearish pressure: “EUR/GBP is under pressure near term following last week’s failure just ahead of .8671, the July 2021 high. The market has reacted back to key support at .8505/00, the lows from mid-July, and these are exposed and failure here will target key support is .8471/49, the recent low and lows since 2019. We again look for these to hold the downside.”

Technical levels to watch

 

 

Market Focus

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

Open Demo Account
I understand and accept the Privacy Policy and agree that my name and contact details can be used by TeleTrade to contact me about the information I have selected.
23 International Awards
Have a question?

We are ready to assist you in every step of your trading experience
by providing 24/5 multilingual customer support.

Follow us

Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.

© 2011-2021 Teletrade-DJ International Consulting Ltd

Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.

The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).

The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.

TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.

Please read our full Terms of Use.

To maximise our visitors' browsing experience, TeleTrade uses cookies in our web services. By continuing to browse this site you agree to our use of cookies.

Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Choose your language/location