EUR/GBP is trading at 0.8705,
Currently, EUR/GBP is trading at 0.8705, down -0.57% on the day, having posted a daily high at 0.8769 and low at 0.8694.
London Bridge terror attack: safe havens and ongoing terrorism
EUR/GBP nose-dived at the start of the week, despite the terror attacks in London on Saturday or given how close the polls have been narrowing considering the Conservatives were expected to win by a landslide on June 8th.
What is in store for the week ahead in Europe?
The polls are vastly different from ICM’s latest that provide a landslide scenario while according to YouGov, we are looking the possibility of a hung parliament – this should be sterling negative as the uncertainty should keep flows at bay and investors risk averse.
Meanwhile, focus will also turn to the ECB this week. “Draghi has indicated that it is premature to talk about the exit strategy, and this applied to the negative deposit rate as much as the asset purchases. The earliest the ECB will announce its intentions for next year is September. The ECB is expected to buy 30-40 bln euros of assets in the first part of next year, down from 60 bln currently and 80 bln most of the last year and through Q1 17,” explained analysts at Brown Brothers Harriman.
“We will assume while above the 200 day and 55 day ma at 0.8602/548, an upside bias remains to test the 0.8790 March high and potential to the 0.8852 January high,” analysts at Commerzbank explained, adding, “where are we wrong? Below the 55 day ma will target the 18th May low, which guards the 0.8383 May low and failure here will retarget key support at 0.8334/04.”