EUR/GBP meets fresh supply near 0.7050, UK data eyed

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 2, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The offered tone on the EUR keeps growing bigger heading into early Europe, now pushing EUR/GBP to session lows.

    EUR/GBP capped below 0.7050 region

    Currently, the EUR/GBP pair drops -0.13% to 0.7011, miring close to session lows struck at 0.7007 in late-Asian trades. The overnight recovery in the cross from near weekly ahead of 0.70 handle faded as the EUR bears fought back control amid broad based US dollar rebound.

    The EUR/USD pair retreated from close to Friday’s high, despite markets anticipating an uptick in the consumer prices in the Euro zone. While markets moved past upbeat EU PMIs and employment data released on Tuesday.

    While the losses remains limited on sterling weakness against the US dollar, as market continue to weigh the recent dismal UK manufacturing PMI report. Focus now shifts towards the UK construction PMI result which will be followed by Euro zone flash CPI for further momentum on the pair.

    Euro zone inflation is expected to tick higher, registering a 0.3% rise y/y in Nov. In October, consumer price growth in the euro zone saw a flat 0.0%. While the UK construction PMI is expected to stay well in expansion at 58.6, but worse than the previous 58.8 result.

    EUR/GBP Technical Levels

    To the upside, the next resistance is located at 0.7054 (Dec 1 High), above which it could extend gains to 0.7083 (Nov 24 High). To the downside immediate support might be located at 0.7000 (round number) below that at 0.6989 (Nov 23 Low).
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