The other side of the coin
After a short-lived period of revived volatility, ranges within EURGBP are becoming muted once again. Even for a major currency pair, the lack of volatility and tight ranges within EURGBP through the summer months was disturbing. Eventually a break of this range in favour of the Euro allowed some volatility to reemerge. Following the technical break of summer’s trading range, it is too early to conclude that a new range has been defined. Even whilst markets continue to establish the new short-term ranges for the currency pair, trading behaviours remain very orderly. As many traders are even calling it: boring.
With such lacklustre trading within the pair, it is often hard to separate the technical signal from the noise. So often recently, the story of the Euro has been sidelined. Even most movements in Euro crosses have been analysed from the point of view of the counter currency. However, with some meaningful data being published in the Eurozone this month, a more Euro-centric analysis could be required.
Recent data has shown that core Eurozone economies have had more resilient economic growth than many expected. Whilst this could be a good thing, fast moving economic sentiment data has showed that consumer and business confidence has not kept pace with such statistics. We therefore have an environment of declining expectations despite sanguine hard data. This can be particularly damaging to economies and create self-fulfilling economic downturns later down the road.
Discussion and Analysis by Charles Porter
Click Here to Subscribe to the SGM-FX Newsletter
Related Insights
Daily Brief – Secondary effects
Charles Porter
Thu 29 Jan 2026
Secondary effects Despite the Federal Reserve decision last night offering momentary relief to the Dollar, a structural shift in USD remains underway. There were two themes to the Federal Reserve’s decision last night. Firstly, the Fed presented a decision to hold based upon the resilience that the US economy is showing. Secondly, Powell staged a […]
Daily Brief – A Dollar Vacuum
Charles Porter
Tue 27 Jan 2026
A Dollar Vacuum If you’ve ever heard the phrase, ‘a rising tide lifts all boats’, you already know everything you need about today’s FX market. That is provided of course you’re not trying to analyse the rising tide itself, in this case our US Dollar. The Dollar is the counter currency to most key pairs […]
Daily Brief – Left field
Charles Porter
Tue 20 Jan 2026
Left field After this weekend, markets have been left questioning whether the White House’s pursuit of Greenland remains noise or has become a material risk. Certainly, the threat of escalating tariffs once again until a deal is achieved in the United States’ favour escalates economic risk once again. Trump’s social media foreign policy over the […]
