SniperFx

Archives

  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • September 2022
  • August 2022
  • January 2022
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019

Categories

  • Analysis
  • Bonds
  • COVID
  • Crypto
  • Forex
  • Forex Trading
  • Ideas
  • Investing
  • Stocks
  • Uncategorized
  • World
  • Home
  • Forex
  • Crypto
  • Contact
0 Likes
0 Followers
0 Followers
Subscribe
SniperFx
SniperFx
  • Bonds
  • Crypto
  • COVID
  • Forex
    • Forex Trading
  • Ideas
  • Investing
  • Stocks
  • World

EURGBP recovers further from two-month low set on Wednesday, retakes 0.8800 ahead of ECB

  • admin
  • March 16, 2023
  • 2 minute read
Total
0
Shares
0
0
0
  • EUR/GBP gains strong positive traction and draws support from a combination of factors.
  • Easing fears of fresh turmoil in the European banking sector boosts the shared currency.
  • The ECB-BoE policy divergence lends additional support ahead of the key ECB decision.

The EUR/GBP cross builds on the previous day’s late recovery move from the 0.8720 area, or a nearly two-month low and gains strong follow-through positive traction on Thursday. The momentum remains unabated through the mid-European session and pushes spot prices back above the 0.8800 round-figure mark in the last hour.

A positive development surrounding the Credit Suisse saga, along with the prospects for a jumbo rate hike by the European Central Bank (ECB), benefits the shared currency and acts as a tailwind for the EUR/GBP cross. In fact, the troubled Swiss bank announced that it will exercise an option to borrow up to $54 billion from the Swiss National Bank (SNB) to shore up the liquidity. This helps ease fears about fresh turmoil in the European banking sector. Adding to this, reports on Wednesday indicated that ECB policymakers are still leaning towards a 50 bps lift-off later today.

It is worth mentioning that investors had begun to doubt if the ECB will stick to its commitment for another big interest rate hike, especially after last week’s collapse of two mid-size US banks – Silicon Valley Bank and Signature Bank. However, a source close to the ECB’s rate-setting Governing Council said there was no fundamental change in the outlook, while the Eurozone economy is picking up strength and inflation is expected to remain high for years. In contrast, the markets are now pricing in a 50% chance that the Bank of England (BoE) will pause its rate-hiking cycle next week.

In fact, interest rate futures suggest a 50% chance that the BoE will leave rates unchanged and an equal possibility of a smaller 25 bps rate hike. This further contributes to the British Pound’s relative underperformance and provides an additional lift to the EUR/GBP cross. Thursday’s strong move up, meanwhile, follows the overnight failure to find bearish acceptance below the 100-day Simple Moving Average (SMA) and supports prospects for additional gains. Traders, however, might prefer to wait on the sidelines ahead of the key central bank event risk – the ECB policy decision.

Total
0
Shares
Share 0
Tweet 0
Pin it 0
admin

Previous Article

EURUSD At risk of breaking below 1.05 if concerns over Credit Suisse are not resolved quickly – MUFG

  • admin
  • March 16, 2023
View Post
Next Article

GBPJPY In-Depth Analysis, Buy Sell

  • admin
  • March 16, 2023
View Post
You May Also Like
View Post
  • Forex Trading

Sterling gives up eight-week peak on profit-taking

  • admin
  • April 1, 2023
View Post
  • Forex Trading

Thailand BoT hiking cycle over – UOB

  • admin
  • March 30, 2023
View Post
  • Forex Trading

Concerns about insufficiently decisive Riksbank would put SEK under downward pressure – Commerzbank

  • admin
  • March 29, 2023
View Post
  • Forex Trading

USDCHF touches fresh daily high amid risk-on mood, softer USD acts as a headwind

  • admin
  • March 28, 2023
View Post
  • Forex Trading

EURUSD Euro to suffer on a temporary abandonment of the ECB’s fight against inflation – Commerzbank

  • admin
  • March 27, 2023
View Post
  • Forex Trading

US S&P Global Manufacturing PMI rises to 49.3, Services PMI improves to 53.6 in March

  • admin
  • March 26, 2023
View Post
  • Forex Trading

AUDUSD drops to over one-week low, below mid-0.6600s amid broad-based USD strength

  • admin
  • March 25, 2023
View Post
  • Forex Trading

EURCHF turns negative and retreats from tops near 1.0000 post-SNB

  • admin
  • March 23, 2023

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts

  • New UBS CEO plays down concerns over size of Swiss bank combination
  • Bitcoin white paper makes its F1 racing debut on Kraken-sponsored car
  • EURCHF: Watch For Price Reversal Near The Resistance Zone
  • Sterling gives up eight-week peak on profit-taking
  • USD Makes A Small Comeback Before Weekend Despite Slowing PCE Inflation

Recent Comments

No comments to show.
Featured Posts
  • 1
    New UBS CEO plays down concerns over size of Swiss bank combination
    • April 1, 2023
  • 2
    Bitcoin white paper makes its F1 racing debut on Kraken-sponsored car
    • April 1, 2023
  • 3
    EURCHF: Watch For Price Reversal Near The Resistance Zone
    • April 1, 2023
  • 4
    Sterling gives up eight-week peak on profit-taking
    • April 1, 2023
  • 5
    USD Makes A Small Comeback Before Weekend Despite Slowing PCE Inflation
    • April 1, 2023
Recent Posts
  • ADA Bulls Buck Bearish Trends, Eyes Set on Breaching Resistance
    • April 1, 2023
  • Long COVID exercise trials proposed by NIH raise alarm
    • April 1, 2023
  • India Inc raises Rs 8.84 trillion via rupee bonds
    • April 1, 2023
Categories
  • Analysis (14)
  • Bonds (52)
  • COVID (79)
  • Crypto (71)
  • Forex (87)
  • Forex Trading (52)
  • Ideas (52)
  • Investing (52)
  • Stocks (95)
  • Uncategorized (40)
  • World (200)
SniperFx
  • Home
  • Forex
  • Crypto
  • Contact
Forex & Crypto Updates

Input your search keywords and press Enter.