EUR/USD rallies while EUR/GBP, USD/CNH slip on rate differentials
Outlook on EUR/USD, EUR/GBP and USD/CNH following this week’s Fed, BoE and ECB meetings.
EUR/USD nears November peak
EUR/USD's swift ascent accelerated to the upside when European Central Bank (ECB) president Christine Lagarde said interest rate cuts had not been discussed during its policy meeting at which it was decided to keep rates on hold.
EUR/USD thus surged towards its November peak at $1.1017, having risen above its late August high at $1.0945 which should now act as support. Further minor support is seen around the 14 November high at $1.0887 and the 22 November low at $1.0852.
A rise above $1.1017 would open the way for the 10 August high at $1.1065 to be reached.
EUR/GBP dips after BoE and ECB hold rates steady
EUR/GBP's recovery to Thursday’s £0.8634 high, following its sharp decline from its six-month high at £0.8766, has been followed by another decline to £0.8587 before the cross stabilized. The drop occurred as three of the nine voting Bank of England (BoE) Monetary Policy Members (MPC) voted for another rate hike while six decided to keep UK rates where they are, as the ECB did.
A slip through £0.8587 may put the current December low at £0.855 back on the cards.
Resistance above Friday’s intraday high at £0.8617 sits at this week’s £0.8634 high. Above it meander the 200- and 55-day simple moving averages (SMA) at £0.8663 to £0.8669.
USD/CNH drops to six-month low
USD/CNH's decline from its September CN¥7.3681 one-year high, amid a depreciating greenback, has so far taken the cross to a six-month low at CN¥7.0975 as China’s industrial output growth hits a near two-year high.
The June low at CN¥7.0669 may soon be reached ahead of the psychological CN¥7.00 mark.
Resistance above the CN¥7.1124 November low can be spotted along the 200-day SMA at CN¥7.1505.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa 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
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only
