EUR/GBP ignores UK CPI data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 16, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    A weaker-than-expected UK core CPI number failed to have any impact on Sterling, leaving the EUR/GBP cross largely unaffected around 0.7720 levels.

    Cross hurt by European stocks

    The moderate gains seen in the major European stock markets are keeping the funding currency EUR under pressure. The offered tone around Sterling did not gather pace despite weaker headline monthly CPI and annualized core CPI figure.

    Moreover, the latest polls in UK showed a clear majority in favor of staying in EU. Hence, EUR/GBP did not witness a bullish move on weaker UK inflation data. However, EU stocks are trimming gains, hence the cross is pointing higher now.

    EUR/GBP Technical Levels

    The immediate resistance is seen at 0.7731 (10-DMA), above which the cross could target 0.7772 (5-DMA). On the other hand, a break below 0.7681 (23.6% of 0.6981-0.7897) could see the pair drop to 0.76 levels.
    For more information, read our latest forex news.

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