Back
4 Mar 2015
EUR/GBP licks wounds on cheerful EMU data
FXStreet (Mumbai) - EUR/GBP recouped losses during the European session, recovering half its slide from seven year lows after retail sales growth in the euro zone surprisingly accelerated to its highest since August 2005 in January.
EUR/GBP rises from 0.7253 levels post data
The EUR/GBP pair trades -0.15% lower at 0.7263, retracing slightly from seven year lows posted at 0.7236 levels before UK data. EUR/GBP continues to recover from lows after solid EMU retail sales data lifted investors’ sentiments, pushing the pair slightly higher. Retailers in the 19-nation bloc snatched 3.7% more sales in January than a year ago, the report said. That's more than the upwardly revised 3.1% hike seen in December.
Moreover, a weaker pound after UK services sector unexpectedly slowed in February also cushioned the losses in EUR/GBP. Markit/CIPS PMI measure slid unexpectedly to 56.7 in February, down from 57.2 and below estimate of 57.5.
However, the cross remains pressured largely on euro weakness across the board as markets remain wary ahead of US jobs data and ECB’s QE launch meeting tomorrow.
EUR/GBP Levels to consider
To the upside, the next resistance is located at 0.7300 and above which it could extend gains to at 0.7360 (20-DMA) levels. To the downside immediate support might be located at 0.7242 and below that at 0.7200 (2007 lows) levels.
EUR/GBP rises from 0.7253 levels post data
The EUR/GBP pair trades -0.15% lower at 0.7263, retracing slightly from seven year lows posted at 0.7236 levels before UK data. EUR/GBP continues to recover from lows after solid EMU retail sales data lifted investors’ sentiments, pushing the pair slightly higher. Retailers in the 19-nation bloc snatched 3.7% more sales in January than a year ago, the report said. That's more than the upwardly revised 3.1% hike seen in December.
Moreover, a weaker pound after UK services sector unexpectedly slowed in February also cushioned the losses in EUR/GBP. Markit/CIPS PMI measure slid unexpectedly to 56.7 in February, down from 57.2 and below estimate of 57.5.
However, the cross remains pressured largely on euro weakness across the board as markets remain wary ahead of US jobs data and ECB’s QE launch meeting tomorrow.
EUR/GBP Levels to consider
To the upside, the next resistance is located at 0.7300 and above which it could extend gains to at 0.7360 (20-DMA) levels. To the downside immediate support might be located at 0.7242 and below that at 0.7200 (2007 lows) levels.