 Hello, welcome to this week's CMC Markets currency snapshot. My name is Jasper Lawler, I'm a market analyst here, and today we're going to be looking at the euro sterling currency cross. Now, the pair is starting to look rather interesting. We're heading down towards lows made in July of 2012. But before we get there, the price is starting to diverge a bit with an RSI indicator. Now, the economics of the situation tell us that the euro should be still making losses against the pound, but this technical indicator is telling us otherwise and we want to look a bit more into that. Now, talking about the relative economies of both the UK and Europe, today was a good case in point. We saw the PMIs for services and manufacturing from France and Germany. It was a mixed bag, a slight improvement, but still overall a pretty bad situation. And you can see why when you look at some of the structural problems that are happening in Europe, massively high employment, which is not being addressed by some of the politicians over there. You look across the pond though and you see the UK, we've seen impressive retail sales for this quarter, which were down in the first quarter, strong economic growth. So in the UK, we're looking at a rate hike and speculation as to when that's going to come. It could even come this year, probably it's going to come sometime early next year. In Europe, we're looking at the opposite. We're looking at the potential for further monetary easing, namely in the way of quantitative easing, whereby the European Central Bank would actually be printing more euros, devaluing each euro, whereas in the UK we're looking at a rate hike, whereby investors would be sending money into the pound in order to benefit from those higher interest rates. Now, that's obviously quite a diverging picture and you can see the euro is heading down against the pound, but we're seeing a slight technical situation here on the chart and we have to start thinking why that might be and a lot of this situation does rest on the quantitative easing scenario and the current assumptions may not be right. If the ECB does not engage in some kind of quantitative easing programme, if there are problems with the German Bundesbank opposite, if the German economy starts to recover from its current slowdown and policies within Germany restrict this policy going through, then there will be no devaluation of the euro and the current picture may turn out to be not quite reflecting reality. Now, if we take a quick look at the chart now, this is a daily candlestick chart for euro sterling and what's really supporting the price at the moment is this downsloping trend line across the lows. What you'll often see is a downsloping trend line across the highs. Sometimes it will be across the lows and that's what we're seeing at the moment. Why this is proving particularly significant is we've seen a few touches on this and we're now grinding down against it again, but that's combining these lower lows into this trend line, combining with higher lows being made in the RSI, so a bullish divergence in price alongside a long-term support line. So then if we do see a move in the euro pound back towards and above the 80 level, the 0.80, that could be some kind of confirmation this down trend is subsiding for a while and this RSI bullish divergence is playing out. Now, let's have a quick look at what the CMC clients make of the euro sterling pair and we can see that there is a general bias towards long euro sterling, which is supportive perhaps of this divergence situation playing out with the euro sterling having been on quite a downtrend for a sustained period. It may be poised for a bounce back. Of course, keep in mind that these statistics do vary day to day, so it may be different by the time you're looking at this compared to this video. That's it for today's CMC markets FX currency snapshot. My name is Jasper Lawler. Good luck trading.