EUR/USD and GBP/USD trade near multi-month highs while EUR/GBP drops further
Outlook on EUR/USD, EUR/GBP and GBP/USD ahead of this week’s BoE rate decision.
EUR/USD trades near its one-month high
Last week EUR/USD surged higher as the European Central Bank (ECB) hiked its rates by 25 basis points (bps) to 3.5%. It also alluded to the possibility for a couple more rate hikes being seen while the Federal Reserve (Fed) kept its rates unchanged.
The US dollar thus took a hit with EUR/USD rising to $1.097, near its $1.0973 early April high. Further up beckons the minor psychological $1.10 mark which may short-term cap, once reached.
Potential slips may find support along the 55-day simple moving average (SMA) at $1.0884.
EUR/GBP drops to ten-month low
EUR/GBP is trading at levels last seen in August 2022 and nears last week’s £0.8522 low, a fall through which eyes the mid-August high at £0.8511 and the £0.85 mark.
An acceleration to the downside may occur in the course of this week as the Bank of England (BoE) is expected to hike its rates for a thirteenth time to 4.75%.
Minor resistance can be found at last week’s £0.8541 low and also at the £0.8568 early-June low.
GBP/USD remains close to its 14-month high at $1.2848
GBP/USD continues to surge higher and is trading close to its $1.2848 14-month high, made last week.
A rise above which would open the way for the minor psychological $1.30 level to be reached ahead of Thursday’s BoE monetary policy meeting and interest rate decision.
The only technical support to speak of comes in at the $1.2679 May peak.
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