26 Nov 2014
EUR/GBP wavers after UK GDP
FXStreet (Córdoba) - EUR/GBP wavered between daily highs and lows after the release of in line with expectations UK GDP data.
The second estimate of gross domestic product confirmed UK economy expanded by 0.7% on a quarterly basis or at an annualized rate of 3.0%, matching market’s expectations. Pound weakened slightly as knee-jerk reaction to data but bounced soon after, with EUR/GBP hitting a high of 0.7949 and the retreating to the 0.7930 zone, a few pips below its opening price.
EUR/GBP was under mild pressure before the UK GDP, having scored a low of 0.7928, as ECB Vice President Vitor Constancio sent a strong signal the bank is ready to buy sovereign bonds early next year if needed.
The second estimate of gross domestic product confirmed UK economy expanded by 0.7% on a quarterly basis or at an annualized rate of 3.0%, matching market’s expectations. Pound weakened slightly as knee-jerk reaction to data but bounced soon after, with EUR/GBP hitting a high of 0.7949 and the retreating to the 0.7930 zone, a few pips below its opening price.
EUR/GBP was under mild pressure before the UK GDP, having scored a low of 0.7928, as ECB Vice President Vitor Constancio sent a strong signal the bank is ready to buy sovereign bonds early next year if needed.