ForexBrokerInc Fresh Technical Analysis,Nov17

[ForexBrokerInc]

Are Europe’s top two currencies posed to further declines?

As the US Dollar Index climbs to near 88 points area (last seen in in June 2010) the two major European currencies – Euro and Pound continue their decline in value.

As recent Bank of England’s inflation report prompted investors to delay expectations for a UK rate hike till late next year and inflation to fall below 1% at some point during the next six month, it’s not an easy task to look for reasons to buy Pound Sterling in the near future.

Tuesday’s UK CPI report followed by Wednesday’s Bank of England and FED Minutes report should show a mid-term trend for the British currency. Our view on GBPUSD remains unchanged.

As for the single currency, Euro enjoyed a short term gain versus the greenback mainly due to Eurozone’s economic expansion of 0.2% in the three months to September and grew 0.6% from the same period a year earlier with Germany only to just avoid a recession, posting growth of 0.1% in the last quarter. Some good news here however, Greece exited a six-year recession.

There are tho no major changes to the overall trend and without new investors the EURUSD is likely to continue towards 1.21 area (last seen in July 2012).