EURUSD - Trends, Forecasts and Implications (Part 2) - page 1810

 
London FX: Pound was washed away in a wave of profit taking

The release of the Bank of England meeting minutes provided support for the pound, sending it from $1.6220 to a high of $1.6275. Monetary policy committee members were divided again, this time the ratio was 1-5-3, with senior central bank economist Spencer Dale joining the hawkish camp of Andrew Sentance and Martin Weale.

However, attempts to break the key resistance at $1.6280/1.6300 proved fruitless and triggered profit taking, which brought the pair back to $1.6200.

Sterling opened in Europe at $1.6177, stg0.8465. A new wave of demand in early trading allowed the pound to follow the euro/dollar and strengthen to $1.6235. The cross meanwhile consolidated at stg0.8452/73 after yesterday's rally. The pound/dollar rolled back to the $1.6195/90 area before settling in the $1.6200/25 range and frozen in anticipation of the Bank of England minutes. In response to the release, the pair jumped from $1.6220 to a high of $1.6275. However unsuccessful attempts to break through the key resistance at $1.6280/00 triggered profit taking and the pound plunged to $1.6209 (38.2% $1.6101/1.6275), where bids before $1.6200 helped the pair stay afloat.
 
margaret:
London FX: The pound has been swept away in a wave of profit taking

Monetary policy committee members are once again divided, this time by a 1-5-3 ratio, with senior central bank economist Spencer Dale joining the hawkish camp of Andrew Sentance and Martin Weale.

will this have any impact in the mid-term on the pound?
 
Where are we going on the eur/dollar....
 
Alex_K:
Where are we going on the eur/dollar....

Who cares, as long as it stays there.
 
Alex_K:
Where are we going on the eur/dollar....

When the tops are updated and the lows are not, the pair is rising)))
 
Alex_K:
Where are we going with the eur/dollar....

The south should be moving. The whole of Europe fits, at most, in 50 pips. Overbought on H1 RSI, overbought on H4 too.

At 1.3749 put 107 and volumes are going to increase at this level, I think the Americans will take the Euro southwards, somewhere to 1.3550, the first

significant call 40. Moreover, on the H1 RSI there is a divergence (red slope on the screenshot).

 
strangerr:

When the tops are renewed and the lowers are not, the pair grows)))
))))))) and it's itching to sell))))
 
strangerr:

When the tops are renewed and the lows are not, the pair is growing)))


See samm. When talking about 3-wave, there was a base. Impulse, but further movement showed that it was not a 3-wave but a 5-wave, i.e. wedge or triple zig-zag was going on, we will find out soon. Now the KDT (diagonal pattern) is coming to an end and the price can either update the top or has already started to form the first waves of correction. That is all. I don't want to be more specific, because I don't want to be the reason .....

 
Minutes of the latest Bank of England meeting. Highlights:

  • 6 committee members voted in favour of keeping the rate unchanged, 3 against;
  • Dale joined Will in voting to raise the key rate by 25 basis points;
  • Sentance spoke in favour of a 50 basis point key rate hike;
  • Posen spoke in favour of increasing the bond-buying programme by £50bn to £250bn;
  • Most committee members felt that the balance of inflation risks had shifted upwards.
 
Süddeutsche Zeitung
Experts predict bankruptcy in eurozone
Economists in Europe forecast that Greece is on the brink of bankruptcy. Doubts about the solvency of Portugal are also increasing. Financial experts fear an uncontrolled collapse of the euro zone and call for the exclusion of individual countries from the monetary union of the EU.

Deutsche Welle
Crisis in Libya may be a problem for entire European economy
The main threat is a spike in oil prices, which is boosting inflation and slowing economic growth. Therefore, increased recessionary tendencies and new financial turmoil are likely in the southern eurozone countries.
Reason: