6 Sep 2013
EUR/GBP jumps to highs after tranche of UK data
FXstreet.com (Lisbon) - The EUR/GBP technical cross rallied higher Friday, having witnessed a plethora of UK economic data during European trading, which sent the pair soaring.
In the United Kingdom, Industrial Production (YoY) fell -1.6% in July, beating estimates of -1.7%. In addition, Consumer Inflation expectations were reported at 3.2%, compared with a figure of 3.6% previously. Manufacturing Production (YoY) also notched -0.7% in July, which bested a projection calling for -0.8%. Meanwhile, the Goods Trade Balance (July) yielded £-9.853B, missing estimates of £-8.150B.
Given the rally out of negative territory, the EUR/GBP is now operating at session highs 0.8427, securing a gain of +0.14% above its opening. Briefing the technicals, the EUR/GBP remains capped by resistances at 0.8449, onto 0.8486, and 0.8509, notes the Mataf.net analyst team.
EUR/GBP strategic bias
According to Karen Jones, an analyst at Commerzbank, “The EUR/GBP is approaching its April 2013 low at 0.8399 and 55-week ma at 0.8365. While its is possible that this will hold the initial test, any rebounds will find initial resistance offered by the June low at 0.8470 and stronger resistance at 0.8533.”
In the United Kingdom, Industrial Production (YoY) fell -1.6% in July, beating estimates of -1.7%. In addition, Consumer Inflation expectations were reported at 3.2%, compared with a figure of 3.6% previously. Manufacturing Production (YoY) also notched -0.7% in July, which bested a projection calling for -0.8%. Meanwhile, the Goods Trade Balance (July) yielded £-9.853B, missing estimates of £-8.150B.
Given the rally out of negative territory, the EUR/GBP is now operating at session highs 0.8427, securing a gain of +0.14% above its opening. Briefing the technicals, the EUR/GBP remains capped by resistances at 0.8449, onto 0.8486, and 0.8509, notes the Mataf.net analyst team.
EUR/GBP strategic bias
According to Karen Jones, an analyst at Commerzbank, “The EUR/GBP is approaching its April 2013 low at 0.8399 and 55-week ma at 0.8365. While its is possible that this will hold the initial test, any rebounds will find initial resistance offered by the June low at 0.8470 and stronger resistance at 0.8533.”