{"id":22529,"date":"2009-04-19T22:54:47","date_gmt":"2009-04-20T02:54:47","guid":{"rendered":"http:\/\/www.forexyard.com\/blog\/en\/?p=2897"},"modified":"2009-04-19T22:54:47","modified_gmt":"2009-04-20T02:54:47","slug":"eur-and-gbp-outlook-20-april-2009","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/04\/19\/eur-and-gbp-outlook-20-april-2009\/","title":{"rendered":"EUR and GBP Outlook \u2013 20 April 2009"},"content":{"rendered":"

\"printprofile\"<\/p>\n

EUR<\/strong>
\nThe EUR fell against the Dollar as this past week\u2019s trading of the Euro-Zone currency was driven by a looming rate cut from European Central Bank (ECB). Traders have all but priced in another 0.25% rate cut as economic numbers have yet to show a strong sign of improvement. <\/p>\n

<\/span>Market forces are also playing out scenarios for the possibility of quantitative easing moves being undertaken by the ECB as comments from ECB President Jean-Claude Trichet hinted that the possibility remains open. These comments helped drive the EUR\/USD to a 1-month low during Friday\u2019s trading session of 1.3104. This level has not been seen since the U.S. unveiled its own quantitative easing program.<\/p>\n

This coming week will have the release of surveys gauging the business climate in the Euro-Zone economy. On Tuesday, the German ZEW Economic Sentiment report will be released, and is expected to show a very positive result. However, some analysts may have been caught up in the recent rally in equity markets and could be a bit too bullish. This may be a good time to go short on the EUR\/USD. We could see the pair trading near the 1.2850 level by Friday.<\/p>\n

GBP<\/strong>
\nThe Pound continues its correction against the Dollar as a brighter economic outlook helped the Pound rise further this week. The Pound ended the week up against the Dollar at 1.4795 from 1.4674 and down.<\/p>\n

Against the EUR, the Pound extended its bullish trend to a 4th week in a row. This pair may be a bit undervalued at the 0.8830 level.<\/p>\n

Preliminary GDP is due out on Friday as analysts\u2019 consensus estimate is for a contraction in the first quarter of 1.5%. This could be an overly aggressive estimate. Worse results could send the EUR\/GBP above the 0.8900 mark.<\/p>\n","protected":false},"excerpt":{"rendered":"

EUR
\nThe EUR fell against the Dollar as this past week\u2019s trading of the Euro-Zone currency was driven by a looming rate cut from European Central Bank (ECB). Traders have all but priced in another 0.25% rate cut as economic numbers have yet to show a…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-22529","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/22529","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=22529"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/22529\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=22529"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=22529"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=22529"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}