EUR/GBP revisits daily lows near 0.7330 on CPI

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 5, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The European currency kept the offered tone intact versus its American peer in the European morning, as markets were disappointed by below estimates Euro zone CPI figures.

    EUR/GBP hit by dismal EZ data

    Currently, the EUR/GBP pair trades -0.33% lower at 0.7336, heading close to session lows struck at 0.7333 levels in last hours. The EUR/GBP cross ran through fresh offers at 0.7350 levels and reverted to daily lows struck near key support zone around 0.7330, after the EUR bulls were spooked by disappointing Euro zone Dec inflation numbers.

    The Euro zone CPI data came in at 0.2% in Dec, the same seen in Nov, although came below a 0.4% rise expected by markets, while the Core CPI also matched the previous reading.

    However, the losses remain restricted in EUR/USD on the back of the extension of losses in sterling across the board. The cable shrugged off upbeat UK construction PMI data and remains pressured on risk-off trades amid negative European equities.

    EUR/GBP Technical Levels

    To the upside, the next resistance is located at 0.7389 (Dec 30 High), above which it could extend gains to 0.7404 (daily R1). To the downside immediate support might be located at 0.7305 (Dec 23 Low) below that at 0.7276 (Dec 21 Low).
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