GBP to EUR continues to hover around 1.2, what will it take to push the exchange rate yet further
Monday, 05 March 2012 14:08
The GBP to EUR exchange rate is currently 0.05% lower on last week's close, the exchange rate is sitting at 11995 at 14:05 GMT.
The GBP continues to hover at the 1.2 level and one wonders what it will take for the exchange rate to make a firm break away from this level.
If we look at the technicals, we see the "EUR-GBP caught the low almost to the pip on Friday and that continues to be an important level, the longer term picture still points for further downside although the shorter term still needs to break below the 0.8315/0.8280 levels for that to pick up pace," says William Moore at RBS.
Intraday, Moore favours the range trade to the metrics as outlined above. Top side important levels lie at 0.8372 and 0.8493,
key longer term support at 0.8223.
"Had this not been a daily piece I’d be recommending longer term shorts with stop losses through 0.8520 targeting 0.8286
onto 0.8192 onto 0.8069 as that represents pretty good risk/return here. For the short term use the 0.8429 level as a good
fade level intraday and 0.8315 should provide some support," says Moore.
Elsewhere, Chris Towner, director of FX advisory services at currency specialist HiFX, comments on the impact of Putin’s re-election and the future of the rouble
"Despite the concerns about voting transparency Putin has returned to power in Russia. So far this year the Russian rouble has had a good run, strengthening from levels above 50 rouble to one Pound to briefly test below 46.00 last week.
"It has been the global economy though rather than politics that have been driving the rouble and its strength is down to the stabilisation that we have seen in the European sovereign debt crisis. On top of this it is the high yielding commodity currencies which are sought by investors in times of risk aggression and the rouble is one of these with its current 8% yield.
"Inflation, although stubbornly high, is expected to remain below 10% this year and high oil prices have certainly helped improve the prospects for the Russian economy and indeed the Government’s revenues. Health reform and military spending are on Putin’s to do list now and he is expected to flex his muscles both on the domestic front as well as on the international front.
"However after the euphoric start to 2012, his re-election comes at a point when financial markets are questioning the longevity of the current good feel in the global markets and we all know how sensitive the rouble can be to financial nervousness."
GBP to EUR: Latest News
- GBP to EUR finally decides to wake up as risk-rebound goes into overdrive in afternoon session
- GBP to EUR: Uneventful market conditions continue! Currency pair virtually unchanged from yesterday
- GBP to EUR technicals: Things are starting to look heavy for the EUR again
- GBP to EUR in strong advances as a dovish ECB session looms, latest PMI data does not help either
- The GBP to EUR is a bright spot on a day when markets are showing a renewed sense of fear on the Eurozone outlook
- GBP to EUR technicals: 0.8500 level held firm and the EUR failed at its first major hurdle
- Technical outlook for the GBP to EUR exchange rate: Go short on the breaking of 0.8315 for EURGBP say RBS
"These levels, and slightly higher ones in EUR/GBP, should make excellent GBP buying opportunities." Read More....
Most Popular on GBP to EUR.com
- GBP to EUR: RBS sees exchange rate higher in one year
- Where to for GBP to EUR?
- GBP to EUR today: Pound slips on latest data
- The week ahead for GBP
- Pound Euro: Key data events for the week ahead
- GBP to EUR latest; UK unemployment figures are out
- GBP falls, risk aversion knocks demand
- GBP to EUR looking cheap at current levels
- GBP to EUR: Inflation accelerates but no one is expecting a shift in attitude at the Bank of England
- GBP to EUR is having a good day courtesy of a stock market slump
GBP to EUR - Get a Quote
Our partners at foreign exchange specialists
TorFX are here to assist you with your money transfer requirements between Europe and the UK.
Ask for your quote today.
As a secure FSA regulated payment provider they have access to over 40 currency accounts and can provide same day exchange transfers.