My picks: Stay Short EUR/GBP
Expertise: Fundamentals and Technicals
Average Time Frame of Trades: 2 - 10 Days
Following the short EUR/GBP trade from the previous week, the pair has yet to reach my target at 0.8810, the 3/2 low, and I will maintain the position as the European Central Bank is widely expected to lower the benchmark interest rate by 25bp to a record-low of 1.00% this week. Over the next few days of trading, we may see the pair hold a tight range as investors weigh the outlook for future policy however, as the ECB is expected to adopt unconventional tools to stimulate the ailing economy, expectations for further easing is likely to weigh on the exchange rate, and we may see the euro-pound break below its current range to retrace the advance from December as the outlook for growth and inflation falter.
