In the previous European trading session, the Euro won versus the Great British pound as hopes over a Greek debt deal turned to doubts, prompting investors to sell the former in favor of the latter. In the UK, the GDP economic release confirmed that Britain exited a double dip recession in the third quarter, in turn increasing demand for Sterling. In today’s European exchanges, the EURGBP pair is seen to wane as questions rise whether or not Greece’s debt programme would be sustainable in the future.
Meanwhile, the Sterling is seen to benefit amidst uncertainties as it is seen as a better alternative than the Euro. As questions rise as to the sustainability of the Greek debt program, the situation is likely to favor the Pound. The release of the Revised GDP data confirming the 0.1 percent growth posted by Britain’s economy in the third quarter, is also another factor that is seen to extend support to the Sterling. Thus, a short position for the EURGBP pair is deemed a better choice in today’s European session.
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