Eur/gbp Parity On September

FX Strategy Weekly Market Outlook => Pro-risk currencies unfazed by EU periphery troubles; focus on G20 => BoE QIR to test sterling resilience A quiet data and event calendar means the dust should settle somewhat over global asset markets over the coming week, allowing investors to catch their breath and consider what will influence financial markets over the closing weeks of 2010. Risk appetite received a shot in the arm from the $600bln Fed Treasury purchase programme and this largely managed to neutralise escalating fears over the euro zone periphery where bond and CDS spreads hit new record highs. Though long high yield and commodity currency positions already look stretched technically, attractive yield differentials and QE flows from US into non-US assets are likely to spur ...

Commentary of the EUR/GBP parity: The parity just broke 0.86, offering a new buy signal. This breakout allowed the price to reach the upper band of its bullish channel. All indicators are bullish. We maintain to trade only long positions as far as 0.86 is support. A pullback on this level stay possible. The breakout of 0.87 will give a new buy signal. The next major resistance is at 0.88. See the previous analysis of the EUR/GBP parity of September 30th, 2010

Commentary of the EUR/GBP parity: The parity is currently moving into a bullish channel. THe price just fake the breakout of the resistance at 0.86. Indicators stay globaly bullish. We maintain to trade only long positions as far as the price is above 0.8550. The breakout of 0.86 will give a new buy signal. The next major resistance is at 0.88. See the previous analysis of the EUR/GBP parity of September 29th, 2010

Commentary of the EUR/GBP parity: The parity fake a breakout of the support at 0.85. The return above this level gave us a buy signal. All indicators are getting bullish and the price is currently testing the resistance at 0.86. We maintain to trade only long positions as far as 0.8550 is support. The breakout of 0.86 will give another buy signal. 0.88 is the next major resistance. See the previous analysis of the EUR/GBP parity of September 28th, 2010

Commentary of the EUR/GBP parity: The parity is currently testing a breakout of 0.85. Indicators are now neutral. We stay neutral as far as the price is moving between 0.8450 and 0.85. We will wait an exit of this range to take position: - Long if the price gets back above 0.85 - Short if 0.8450 is broken See the previous analysis of the EUR/GBP parity of September 27th, 2010

Commentary of the EUR/GBP parity: The parity just reached the resistance at 0.8550 (highest of mid july). Some indicators are showing signs of reversal. We maintain to trade only long positions as far as 0.85 is support. A return above 0.8550 will comfort our bullish feeling. However, if 0.85 is broken, we will wait the breakout of 0.8450 to trade only short positions as far as 0.85 will be resistance. See the previous analysis of the EUR/GBP parity of September 24th, 2010

FX Strategy Weekly Market Outlook => Dovish FOMC puts more downward pressure on the USD The FOMC's hint that more QE may be coming in November sent the USD into a renewed decline against all the traditionally more risky currencies, with the EUR, AUD and Scandis leading the way. It is hard to oppose this trend short term even though the USD is reaching very cheap levels. The USD made a new historic low against the CHF this week, but it seems likely that more risk positive currencies will perform better next week as a more positive risk tone emerged at the end of the week. The AUD is in focus as parity approaches, but there is better value in the NOK and SEK. GBP should also be a strong performer as EU related payments are expected to push EUR/GBP lower. The US ISM on Friday will be the ...

Commentary of the EUR/GBP parity: The parity didn't succeed to reach the next resistance at 0.86. The price just made a pullback on 0.85 and is currently testing a rebound on this level. We maintain to trade only long positions as far as 0.85 is support. The breakout of 0.86 will give a new buy signal. See the previous analysis of the EUR/GBP parity of September 23th, 2010

Commentary of the EUR/GBP parity: The breakout of the resistance at 0.85 has been validated, offering us a new buy signal. The price is currently testing 0.8550. We maintain to trade only long positions as far as 0.85 is support. The breakout of 0.86 will give a new buy signal. See the previous analysis of the EUR/GBP parity of September 22th, 2010