By Justin McQueen — Jan 30 - 05:45 AM
• Though the euro is drifting lower ahead of the ECB decision
• Little surprises are expected with a 25bp cut a near done deal
• The bigger driver for FX will be U.S. trade policy updates
• While this remains a greater risk for euro over sterling
• Keeping EUR/GBP on the backfoot and drifting towards 100DMA (0.8344)
• Until universal tariffs are announced, 100DMA may limit drop
• With BoE due next week, risk/reward in chasing GBP upside is unfavourable
• Resistance = 0.8418 (200DMA), 0.8450-70 (cluster of Jan highs)
EURGBP daily chart
(Justin McQueen is a Reuters market analyst. The views expressed are his own.)
Source:
London Stock Exchange Group | Thomson Reuters