Solid News

EURGBP is Correcting at the End of the Week

4/21/2023 12:01 PM

The EUR/GBP pair shows ambiguous trading dynamics, holding near 0.8815. Market activity remains quite low, despite the release of a fairly large amount of macroeconomic statistics from Europe and the US.

The focus of investors was data on the dynamics of production inflation in Germany. In March, the Producer Price Index fell by 2.6% after -0.3% in the previous month, while analysts expected -0.5%, and in annual terms, the indicator sharply slowed down from 15.8% to 7.5%, which also turned out to be significantly lower than market forecasts at the level of 9.8%. Some support for the single currency was also provided by data on the Trade Balance in the euro area. In February, the seasonally adjusted indicator finally entered the surplus zone, fixing at the level of 4.6 billion euros, while a month ago the balance remained in deficit at -30.6 billion euros, while analysts' forecasts assumed an improvement in dynamics only to -22.3 billion euros.

Today, the focus of investors will be the April statistics on business activity in the manufacturing sector and the services sector of the eurozone from S&P Global. Also during the day, European Central Bank (ECB) representatives Frank Elderson and Luis de Guindos are expected to speak. In addition, investors are waiting for the publication of March data on the dynamics of Retail Sales in the UK. It is assumed that the indicator in monthly terms will decrease by 0.5% after rising by 1.2% in the previous month, and in annual terms, the market expects an improvement in dynamics from -3.5% to -3.1%.

Bollinger Bands in D1 chart show insignificant growth. The price range is narrowing, reflecting ambiguous dynamics of trading in the short term. MACD is going down preserving a previous sell signal (located below the signal line). Stochastic is showing similar dynamics; however, the indicator line is rapidly approaching its lows, indicating the risks of oversold euro in the ultra-short term.

Resistance levels: 0.8820, 0.8841, 0.8863, 0.8900. | Support levels: 0.8800, 0.8783, 0.8750, 0.8727.

Find Us
Registered Address : Bonovo Road – Fomboni Island of Mohéli – Comoros Union
Sofia, PO Box 1407,14 Flip Kutev Str. Floor 2, Industrial area Hladilnika, Bulgaria
Call Us
+35 924 928 392

Risk Warnings
Solid ECN Securities LLC offers trading on Foreign Exchange (‘Forex’ or ‘FX’) and Contracts for Difference (‘CFDs’), which are complex financial products that are traded on margin. They carry a high level of risk since leverage can work both to your advantage and disadvantage. As a result, these products may not be suitable for all investors, as loss of all invested capital may occur. You should not risk more than you are prepared to lose. Before deciding to trade, you need to ensure that you understand the risks involved and consider your investment objectives and level of experience. Seek independent advice, if necessary.
Solid ECN Securities LLC does not issue advice, recommendations or opinions in relation to acquiring, holding or disposing of a CFD. Solid ECN Securities LLC is not a financial advisor and all services are provided on an execution-only basis. This communication is not an offer or solicitation to enter into a transaction and shall not be construed as such.
This website is not directed at any jurisdiction and is not intended for any use that would be contrary to local law or regulation.
By using you agree to use our cookies to enhance your experience.
Solid ECN Securities LLC is authorized and regulated by the Comoros Union with reference number HY00623411.
Disclaimer 1: The information provided on this site is not intended for residents of any country or jurisdiction where its distribution or use would violate local laws or regulations.
Disclaimer 2: Solid ECN Securities LLC and it affiliates does not provide services to residents of the USA, Japan, Canada, Australia, the Democratic Republic of Korea, European Union, United Kingdom, Iran, Syria, Sudan and Cuba.
Copyright All Right Reserved 2023