FX Update — EUR/GBP
EUR/GBP, down 0.6% to 0.788, is trading in the lower portion of today’s range and is below both the 9-and 21-day moving averages at near-convergence around 0.789.
Increasing economic uncertainty in the Eurozone and the UK has put a considerably bearish tone on EUR and GBP this week, resulting in extensive declines vs. most currencies. EUR/GBP, however, has only moved sideways. Since April 24, EUR/GBP has traded almost exclusively between 0.80 and 0.78 and has returned to the middle portion of this range in today’s trade.
With few technical signals on which to trade, a breakout from the sideways trend is likely only if fundamentals change — indeed, bad news out of the Eurozone and the UK has seemed roughly proportionate over the past few weeks.