EUR/GBP Drifting Away From Parity

Posted on January 8, 2009 by Yohay
Filed Under Forex News | 6 Comments

Parity in the EUR/GBP surrency pair seemed very close during the 2 weeks of partial holiday in the Forex market. The EUR/GBP cross was already above 0.98, but now it fell back to 0.90.

The bad state of the British economy, and the sharp measures of the BOE took the pound down against the dollar. GBP/USD went as low as 1.44. The Euro wasn’t so strong against the dollar, but stable enough not to lose so much ground like the pound. The lead the cross to almost 1 EUR for one GBP.

But, the pound rallied in the last few days, when forex trading resumed at full throtle. There aren’t any real reasons for this pound comeback. The only reason could be found in technical analysis for EUR/GBP – it was overbought.

Now, the key to the pound’s direction is in the hands of Mervyn King - the BOE will take an interest rate decision, and is expected to set it at 1.50%, a drop of 0.5%.

Some traders in the Forex market are expecting a sharper drop, to 1%. Such a drop could send the pound down, and the Euro will be waiting for another chance to achieve a 1:1 ratio with the pound.

More articles that you may find interesting:

Enjoyed the post? You may want to subscribe by RSS feed or Email.

Tags: ,,,,,,,

» «

Comments

6 Responses to “EUR/GBP Drifting Away From Parity”

  1. Forex Daily Analysis - January 23rd 2009 on January 23rd, 2009 12:03 pm

    [...] to fall below 1.35 and break more negative records. Also GBP/JPY is extremely low – at 120.92.  Parity with the Euro isn’t near, but this pair isn’t going in favor of the pound – EUR/GBP now at [...]

  2. Forex Weekly Wrap Up - January 19-23 2009 on January 24th, 2009 11:43 am

    [...] GBP/USD parity cannot be dismissed.  The pound also lost ground to the Euro. EUR/GBP at 0.9388. EUR/GBP parity  isn’t near, due to Euro weakness, but it’s getting [...]

  3. EUR/GBP Broke Support After Rate Decisions on February 5th, 2009 4:11 pm

    [...] Technical note: if this fall is persistent, EUR/GBP has lots to fall, and parity in EUR/GBP won’t be seen in a very long time. [...]

  4. Critical Week For The Pound | Forex Crunch on April 18th, 2009 8:00 pm

    [...] For those of you trading on the cable, on of the most popular currency pairs, you may expect an exciting week. Also do note the EUR/GBP pair, that has drifted away from parity, yet again. [...]

  5. BadGirl21 on October 11th, 2009 1:55 am

    What are they going to do next: deny you a bank loan? ,

  6. EUR/GBP Enjoys Pound Collapse | Forex Crunch on March 3rd, 2010 10:05 am

    [...] were two attempts to break this line at the beginning of 2009, when EUR/GBP was aiming for parity. EUR/GBP parity was never reached, and continues to be a far point in the [...]

Leave a Reply




Bad Behavior has blocked 1638 access attempts in the last 7 days.