7 Aug 2015
EUR/GBP drops to lows near 0.7030
FXStreet (Edinburgh) - A softer tone in the single currency in combination with a sideline pattern in sterling is driving EUR/GBP to the 0.7030 area pre-European open.
EUR/GBP shed ground on German data
The European cross has given away some pips after the mixed results in the German economy, where the trade deficit has widened to €24.0 billion during June, albeit with exports and imports contracting 1.0% and 0.5%, respectively. In addition, Industrial Production has contracted at a seasonally adjusted monthly pace of 1.4% from May to June vs. forecasts for a 0.4% expansion.
The cross is looking to consolidate the recent break above the 0.70 handle following the sudden weakness in the pound in response to yesterday’s unexpected dovish tone from the BoE and a neutral speech by Governor M.Carney.
EUR/GBP key levels
At the moment the cross is losing 0.12% at 0.7034 with the next support at 0.6963 (low Jul.22) followed by 0.6947 (low Jul.21) and finally 0.6936 (2015 low Jul.17). On the flip side, a surpass of 0.7052 (high Aug.7) would expose 0.7102 (high Jul.23) and finally 0.7160 (high Jul.27).
EUR/GBP shed ground on German data
The European cross has given away some pips after the mixed results in the German economy, where the trade deficit has widened to €24.0 billion during June, albeit with exports and imports contracting 1.0% and 0.5%, respectively. In addition, Industrial Production has contracted at a seasonally adjusted monthly pace of 1.4% from May to June vs. forecasts for a 0.4% expansion.
The cross is looking to consolidate the recent break above the 0.70 handle following the sudden weakness in the pound in response to yesterday’s unexpected dovish tone from the BoE and a neutral speech by Governor M.Carney.
EUR/GBP key levels
At the moment the cross is losing 0.12% at 0.7034 with the next support at 0.6963 (low Jul.22) followed by 0.6947 (low Jul.21) and finally 0.6936 (2015 low Jul.17). On the flip side, a surpass of 0.7052 (high Aug.7) would expose 0.7102 (high Jul.23) and finally 0.7160 (high Jul.27).