Free Trial

EUR/GBP Bounce Confirmed Corrective as Cross Returns Lower

GBP
  • Alongside the positive US cash equity open, GBP/USD improves to briefly touch the best levels of the day at 1.2580 - marking a bounce of just under 50 pips off the overnight lows.
  • Options markets have generally been quiet across G10 FX space, but GBP hedging has been an exception - upside demand has been evident, thanks to more sizeable calls trading today with 1.2565, 1.2660 and 1.2850 strikes.
  • Moves isn't solely USD-led, with EUR/GBP hitting pullback lows in tandem - we noted the corrective nature of the bounce in the cross this week, with MAs holding in a bear-mode condition to expose 0.8493, Aug 23 '23 low as the next key support.
  • Interview with BoE's Dhingra today shed few fresh details on BoE thinking, as she cemented her stance as among the most dovish on the MPC. Breeden and Mann's appearances tomorrow/Thursday should provide views of the more neutral and hawkish ends of the MPC spectrum respectively.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.