Currencies

 

The pound and the dollar can recover additional field when dealing with the euro

In line with the predictions of our earlier report, the euro has not been able to exceed the area of resistances that it has when dealing with the dollar, between 1.20-1.21. Later decreases have taken him to levels close to 1.18 whose loss would suppose to break the accelerated guideline that it has developed from April, with origin in 1.06 eur/usd. If this split was produced, it would be necessary to consider the possibility of that recessions could spread until 1.16-1.15 eur/usd.

Furthermore, the pound sterling about 3.4 % has been appreciated with the euro in which we take of month. We had already pointed out that the punishment that it accumulated seemed excessive and, this week, comments of the BoE on the possibility of going up types have given him an extra boost until levels of 0.885 eur/gbp. The most probable thing is that is stopped between 0.88-0.875, while awaiting to see how takes place the third round of talks between the EU and The United Kingdom for the Brexit.

Source: Bankia Studies