FxWirePro: EUR/GBP slumps below 0.79 handle after BoE leaves policy unchanged, warns about Brexit
EUR/GBP slumped below 0.79 handle to hit lows of 0.7899 before paring some losses to currently trade around 0.79 levels. The Bank of England Monetary Policy Committee (MPC) voted unanimously to maintain Bank Rate at 0.5%…
EUR/GBP slumped below 0.79 handle to hit lows of 0.7899 before paring some losses to currently trade around 0.79 levels.
The Bank of England Monetary Policy Committee (MPC) voted unanimously to maintain Bank Rate at 0.5% at today’s meeting.
The BoE also warned about the effects of a Brexit on UK economy ahead of the June 23 referendum. “Sterling is also likely to depreciate further, perhaps sharply”, said the Bank.
Earlier today the final estimate of euro area inflation in May showed that consumer prices dropped 0.1% y/y in May, having slowed its pace of decline after April's 0.2% drop.
Immediate support is seen at 0.7850 (trendline) and resistance lies at 0.7994 (session highs).
Techs are inconclusive, volatility to remain, we would stay on the sidelines for now.
