EUR/GBP soars to fresh multi-year highs after Draghi
The euro jumped across the board after the release of Mario Draghi’s speech. ECB President didn’t discuss current monetary policy. He mentioned that the global recovery is firming up and also spoke about regulation. The common currency rallied anyway and EUR/USD hit fresh 2017 highs above 1.1900.
Draghi: regulators should be wary of rekindling the incentives that led to the crisis
EUR/GBP jumped from 0.9220, broke the 0.9235/40 resistance, and reached at 0.9268, the highest level since October 2009. The pair remains near the highs, holding a bullish tone.
Earlier today, the euro gained strength after Yellen’s speech. Fed’s Chair also said nothing about monetary policy but markets reacted selling the US dollar while the euro started to gain ground versus the pound.
The pair is about to post the fourth weekly gain in a row. The divergence between the stance of the Bank of England and the European Central Bank continues to be a key factor for the upside in the pair. Also, Brexit negotiations weigh on the pound.
EUR/GBP is now near the 0.9300 handle. Above there is not much resistance until 0.9410, October 2009 highs.
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