Can the British Pound Sterling advance yet further against the Euro on the global exchange rate markets today?
A look at today's Euro Pound exchange rate figures shows:
The Euro to Pound exchange rate is higher on a day to day basis at 1.1880.
The Pound to Euro exchange rate is thus at 0.8417.
Be aware: The above quotes are taken from the wholesale spot markets. Your bank will likely affix a discretionary spread to the figures when passing on a retail rate. However, an independent FX provider will guarantee to undercut your bank's offer, thus delivering more currency. Please learn more here.
The Euro: Downward Bias Forecast
Emmanuel Ng at OCBC Bank says he is forecasting further Euro weakness against the US Dollar - this will likely drag on the Euro to Pound exchange rate pairing:
"Despite the disappointing US labor market numbers, the topside resistance levels at the 55-day MA (1.3189) and then at 1.3200 may prove instrumental in determining near term directionality for the EUR-USD.
"On the CFTC front, net speculative EUR longs dipped in the latest week but a concerted breakout past these two key levels may be required to neutralise the somewhat heavy tone for the pair.
Gareth Berry is bearish on the Euro against both the Euro and the US Dollar.
Concerning EUR/USD, Berry says:
"Strong support is at 1.3103, a break below this would extend the weakness to 1.3021. Resistance is at 1.3223.
On the EUR/GBP: "Having tested the strong support at 0.8397, the immediate risk appears for a short-term recovery to unwind the sharp sell-off. Resistance is at 0.8492. Support is at 0.8285."
Markets: Volatility is still with us
Turning to the broader financial markets we note conditions remain challenging.
Mike van Dulken at Accendo Markets says:
"Friday's volatility visible on short-term graphs, after US jobs data disappointed and uncertainty prevailed on the timing of the Fed's tapering of QE3.
"Sentiment boosted overnight by China trade and inflation data suggesting solidity on the world's #2 economy and a strong upward revision to Japanese Q2 GDP easing some concerns over whether Abe-nomics was working.
"Despite continued fragility of the situation in the Middle East, equities continue their slow march higher from late August with a trendline of rising support at 6520 for the week and 6450 for the month.
"The uptrend since end-June also still on track, although the very long-term graph suggests potential for this to be a brief recovery rally within a longer-term downtrend since end-May."