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EUR/GBP keeps the range despite weak EZ CPI data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 25, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    The drop in the Eurozone inflation figures has not had a major impact on the EUR, leaving the EUR/GBP cross largely unchanged in the range of 0.7890-0.7930.

    Hovers around 0.79

    The pair trades just above 0.79 and is pointing lower after the Eurozone CPI dropped to 0.3% y/y in Jan, missing the estimate of 0.4%. Core CPI also dropped 1.7% m/m. The weak data saw the EUR/GBP turn lower from 0.7919, but still remains in the day long range of 0.7890-0.7930.

    Ahead in the day, the spot remains at the mercy of action in the GBP/USD pair and the broader market sentiment.

    EUR/GBP Technical Levels

    The immediate resistance is 0.7936 (weekly 200-MA), above which the cross could target 0.80 handle. On the other hand, a breakdown of the immediate support at 0.7890 (lower end of the range 0.7890-0.7930) would open doors for a drop to 0.7817 (5-DMA).
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