Good call about the move to the upside, it just reached that level.

I'm neutral at the moment.

I suppose that the price will turn after reaching the 0.8725 level.

 

The pair is retracing, next target is likely around 0.8630.

I suppose that the price will turn after reaching the 0.8520 level.

 

The pair broke above 0.8720 and it's still moving up. Next target is at least 0.8800.

British Pound to Euro Exchange Rate Will Avoid Parity

ING say a continued fall in UK interest rates will push the Pound to notable levels of undervaluation against the Euro.

• Pound to Euro exchange rate today: 1.1423
• Euro to Pound Sterling exchange rate today: 0.8754

Pound Sterling has further to fall against the Euro argue analysts at ING who believe the UK currency will push the limits of undervaluation.

The call comes amidst a broad-based and much-publicised decline in Pound Sterling in early October; triggered by growing concerns over the economic implications associated with the UK Government's push for full autonomy from the European Union.

That the UK currency is described as being undervalued is understandable - as we note here the UK economy continues to grow at an admirable pace.

This leaves the Bank of England with diminishing reason to cut interest rates again in November.

And, for Sterling, the downward trajectory of real UK interest rates is the key driver of weakness.

Nevertheless, analysts at ING believe the Bank of England will remain proactive:

“The BoE appears to have no fears about inflation expectations, where those derived through the two year inflation swap remain above 2.80% - largely on the back of GBP-inspired imported inflation and perhaps BoE credibility.”

Thus real GBP rates are falling. These should keep GBP soft suggests ING’s Chris Turner in London.

“We still expect the political impasse from Brexit to weigh on GBP over the next six months, stretching EUR/GBP towards extremes of valuation at
0.90,” says Turner.

EUR/GBP at 0.90 equates to 1.11 in GBP/EUR.

“We are not in the camp looking for parity in EUR/GBP,” says Turner.

Risks to the view for a firmer EUR/GBP comes from Eurozone politics and the emerging story of stress in the Eurozone’s banking sector.

ING do not see the Italian referendum in early December as a major EUR negative, but analysts warn Eurozone bank stress bears watching.

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source

Back to ranging. NFP tomorrow will decide

4.5 year high.

Does anyone know why this happened?