EUR/GBP drops, GBP/USD rises on June rate cut hopes while EUR/JPY
EUR/GBP drops, GBP/USD rises on June rate cut hopes and as UK exits recession while EUR/JPY continues to advance.
EUR/GBP takes a hit as UK exits recession
EUR/GBP trades back below the 200-day simple moving average (SMA) at £0.86, having briefly risen to £0.86 on Thursday. Above Thursday's high at £0.862 beckons the £0.86 April high. Minor support can be found at the 3 May high at £0.85.
GBP/USD is seen heading back up again
On Thursday GBP/USD reached the $1.24 early May low as expected and then recovered from its $1.24 low before heading back up to the 200-day simple moving average (SMA) at $1.25. It did so as the UK exited its 2023 recession with better-than-expected 0.6% q/q gross domestic product (GDP) growth. Further up lies the March-to-April tentative downtrend line at $1.2602 which should eventually be reached, as well as last week's high at $1.26.
EUR/JPY on track for fifth straight day of gains
EUR/JPY has overcome the ¥167.22-38 zone and thus targets the ¥168.66 early May high. The cross should retains its immediately bullish bias while it stays above Tuesday's low at ¥165.65 on a daily chart closing basis.
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