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EUR/GBP keeps the 0.7500 handle

FXStreet (Edinburgh) - EUR/GBP has faded the earlier spike above 0.7560, now returning to the 0.7525/20 band.

EUR/GBP in 2-week tops

The cross pushed higher on Monday, reaching multi-day peaks in the 0.7550/60 area following the initial offered tone in the sterling and the buoyant momentum around the shared currency. Market participants bypassed the positive manufacturing PMI in the British economy and mixed results from the European releases, largely leaving the price action to the mercy of the risk appetite trends.

In the view of Jane Foley, Senior Currency Strategist at Rabobank, “in view of the divergent outlook for BoE and ECB policies next year we expect EUR/GBP to push down towards 0.73 later this year and to fall further in 2016”.

EUR/GBP significant levels

As of writing the cross is up 0.35% at 0.7528 with the next hurdle at 0.7582 (high Jan.23) ahead of 0.7600 (psychological level). On the flip side, a breach of 0.7443 (low Jan.29) would expose 0.7436 (low Jan.27) and finally 0.7406 (2015 low Jan.26

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