Chart of the Day: EURGBP
I could have focused on the bullish breakouts in EURNZD or EURAUD chart as a Chart of the Day, but GBP is attracting sellers far too easily to ignore. EURGBP is trending beautifully, yesterday’s candle clearly bullish, and the bulls are in firm control. The interesting aspect here is, while we see a collapse in EU inflation expectations (to record lows) amid dovish commentary from ECB member Benoît Cœuré, the EUR has found buyers.
As suggested, GBP can’t find a friend right now. While the process to find a new leader for the Tory party is leading to Boris Johnson, it has to be a concern that the British Chambers of Commerce warned that British companies would cut back on investment this year — by the most in a decade given the uncertainty of Brexit.
Mario Draghi speaks 18:00 GMT+10 tonight, as part of the Sintra conference. His comments on the eurozone economy will put EUR longs at risk. That said, the market knows this and, as we can see from the trend, they aren’t too concerned.
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