EUR/USD, EUR/GBP and GBP/USD outlook ahead major central bank meetings
Outlook on EUR/USD, EUR/GBP and GBP/USD ahead of US inflation and Fed, ECB and BoE rate decisions.
EUR/USD muted ahead of US inflation data release
EUR/USD continues to range trade in low volatility ahead of Tuesday’s US Consumer Price Index (CPI) release for November which is forecast to come in at 3.1% versus 3.2% previously and at 4% for core inflation.
While last week’s low at $1.0724 underpins, Friday’s high at $1.08 is likely to be exceeded with Thursday’s high and the 200-day simple moving average (SMA) at $1.0817 to $1.0826 then being eyed. Further up the 22 November low at $1.0853 may also act as resistance, were it to be reached at all.
A fall through $1.0724 would probably put the 55-day SMA and late-October high at $1.0699 to $1.0695 on the plate, though.
EUR/GBP sideways trades above this week’s £0.8550 low
EUR/GBP's drastic decline from its six-month high at £0.8766, amid the European Central Bank's (ECB) less hawkish stance than that of the Bank of England (BoE), has so far taken it to a three-month low at £0.855.
Further sideways trading in low volatility is expected to be witnessed over the coming days, with Tuesday’s lower-than-forecast wage growth not making a dent. Only a rise above last week’s high at £0.8588 could lead to the mid-October low at £0.8617 being revisited. Together with the £0.865 early-November low it is expected to act as resistance, though, if reached at all that is.
Failure at £0.855 would put the July and August lows at £0.8504 to £0.8493 back in sight.
GBP/USD range trades ahead of US CPI reading
GBP/USD’s slip from last week’s near three-month high at $1.2733, on a strengthening US dollar amid solid US Non-Farm Payrolls, took it close to the 200-day SMA at $1.2493 which continues to underpin.
While it holds, minor resistance around the end of November $1.2604 low may be reached ahead of Tuesday’s US inflation data release.
Further minor resistance can be found around last Tuesday’s $1.2651 high.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market.
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
