5 Jun 2015
EUR/GBP extends gains beyond 0.7350
FXStreet (Mumbai) - EUR/GBP extends gains in the mid-European session, largely on the back of broad sterling weakness despite rising inflation expectations in the UK, while stronger EUR/USD post upbeat German data release also drives the cross higher.
EUR/GBP rises from 0.7320
Currently, the EUR/GBP cross trades 0.53% higher at 0.7352, hovering close to fresh session highs reached at 0.7360 in last hours. The cross in EUR/GBP continues its upward moves mainly driven by falling GBP/USD, completely ignoring an uptick in UK’s inflation expectation for the 12 months ahead.
The latest Bank of England (BOE) survey released on Friday showed inflation expectations for 12-months ahead ticked higher to 2.2% from 1.9% seen in Feb survey. Inflation expectations for 2-years ahead also rose to 2.3% from 2.1%. Meanwhile, interest rate expectations rose to 33 from 28.
On the other hand, the euro remains lifted versus the greenback on the back of impressive German retail sales data ahead of key US jobs report due later today, which further boosts the upside in EUR/GBP.
EUR/GBP Levels to consider
To the upside, the next resistance is located at 0.7400 and above which it could extend gains to at 0.7420 (May 1 High) levels. To the downside immediate support might be located at 0.7292 (Today’s Low) levels below that at 0.7248 (June 3 Low) levels.
EUR/GBP rises from 0.7320
Currently, the EUR/GBP cross trades 0.53% higher at 0.7352, hovering close to fresh session highs reached at 0.7360 in last hours. The cross in EUR/GBP continues its upward moves mainly driven by falling GBP/USD, completely ignoring an uptick in UK’s inflation expectation for the 12 months ahead.
The latest Bank of England (BOE) survey released on Friday showed inflation expectations for 12-months ahead ticked higher to 2.2% from 1.9% seen in Feb survey. Inflation expectations for 2-years ahead also rose to 2.3% from 2.1%. Meanwhile, interest rate expectations rose to 33 from 28.
On the other hand, the euro remains lifted versus the greenback on the back of impressive German retail sales data ahead of key US jobs report due later today, which further boosts the upside in EUR/GBP.
EUR/GBP Levels to consider
To the upside, the next resistance is located at 0.7400 and above which it could extend gains to at 0.7420 (May 1 High) levels. To the downside immediate support might be located at 0.7292 (Today’s Low) levels below that at 0.7248 (June 3 Low) levels.