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EUR/GBP hits 8-month highs and retreats

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 13, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Córdoba) - The euro remains in positive territory against the pound but it moved off daily highs. Earlier EUR/GBP climbed to 0.7492, hitting the highest level since February and currently it was trading at 0.7455/60, up 0.85% for the day.

    Inflation data was lower than expected in the United Kingdom and triggered a decline of the pound across the board. EUR/GBP initially rose to 0.7475 and then to 0.7492. During the US session pulled back trimming gains.

    It retreated from the highs and found support at 0.7455, that become the first support level to consider, followed by 0.7430 (Oct 9 high) and 0.7390/95 (daily low). On the opposite direction immediate resistance might be seen at 0.7475 (intraday level) and 0.7500.

    Data ahead

    After today’s inflation numbers, tomorrow in the UK the employment report for September will be released. “Focus is on wage growth tomorrow when the UK labour market report is due. We expect that the average weekly earnings excluding bonus (3M avg.) rose to 3.0% in August from 2.9% y/y in July. Going forward, we expect wage inflation to accelerate further as the labour market continues to tighten”, wrote analysts from Danske Bank.
    For more information, read our latest forex news.
     

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