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14 Apr 2015
EUR/GBP hits session highs on poor UK data
FXStreet (Mumbai) - The pound continues to get hammered by the shared currency in the European session; keeping EUR/GBP elevated near fresh highs, as sterling tumbled after UK’s CPI figures remained at an all-time low with the core CPI coming in at the lowest levels in eight years.
Pounds drops to session lows on softer UK CPI print
Currently, the EUR/GBP cross trades higher at 0.7218 up 0.26% on the day, hovering close to fresh session highs reached at 0.7221 post data release. The cross in EUR/GBP extended gains largely on pound weakness on downbeat UK inflation data which showed that the headline CPI rate remained unchanged at 0%, the CPI index level fell in March against Feb, taking the annual CPI rate slightly below zero (-0.01%).
Core CPI inflation, which excludes the volatile prices of energy, food and alcohol, fell below expectations to 1.0%, its lowest rate in eight years.
On the other hand, the euro remains deep in red near low against the US dollar as traders now await EZ retail sales and US retails sales data for further cues.
EUR/GBP Levels to consider
To the upside, the next resistance is located at 0.7250 and above which it could extend gains to at 0.7274 levels. To the downside immediate support might be located at 0.7182 (Today’s Low) levels below that at 0.7152 (March 19 Low) levels.
Pounds drops to session lows on softer UK CPI print
Currently, the EUR/GBP cross trades higher at 0.7218 up 0.26% on the day, hovering close to fresh session highs reached at 0.7221 post data release. The cross in EUR/GBP extended gains largely on pound weakness on downbeat UK inflation data which showed that the headline CPI rate remained unchanged at 0%, the CPI index level fell in March against Feb, taking the annual CPI rate slightly below zero (-0.01%).
Core CPI inflation, which excludes the volatile prices of energy, food and alcohol, fell below expectations to 1.0%, its lowest rate in eight years.
On the other hand, the euro remains deep in red near low against the US dollar as traders now await EZ retail sales and US retails sales data for further cues.
EUR/GBP Levels to consider
To the upside, the next resistance is located at 0.7250 and above which it could extend gains to at 0.7274 levels. To the downside immediate support might be located at 0.7182 (Today’s Low) levels below that at 0.7152 (March 19 Low) levels.