EUR/GBP grinding lower to 0.7230

FXStreet (Edinburgh) - The demand for the single currency remains subdued on Friday, now dragging EUR/GBP to test daily lows around 0.7230.

EUR/GBP in multi-year lows

The European cross keeps the area of multi-year troughs in the lower band of the 0.7200 level so far, with the increasing bearish tone around the shared currency as the main force driving the price action.

In the data front, German the Industrial Production expanded at a seasonally adjusted 0.6% MoM during January, beating estimates albeit lower than the 1.0% advance registered in the previous month.

EUR/GBP key levels

At the moment the cross is losing 0.17% at 0.7228 with the next support at 0.7220 (2015 low Mar.5) ahead of 0.7200 (psychological level) and finally 0.7108 (monthly high Dec.2004). On the upside, a breakout of 0.7252 (hourly high Mar.5) would expose 0.7289 (high Mar.3) and then 0.7293 (10-d MA).

EUR/USD: No signs of recovery – FXStreet

FXStreet Editor and Analyst, Omkar Godbole, notes that EUR/USD technicals fail to show any fresh signs of any recovery, and with the pair trading depressed, a move below 1.0991 could lead to a sharp selloff towards 1.0792.
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German industrial production expands 0.9% year-on-year

The data reported by Destatis, the German statistics office, showed the industrial production in January 2015, rose 0.9%, beating the estimate of a 0.2% contraction. The December’s figure was revised upwards to 0.5%.
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