Wednesday, September 9, 2015

EUR/GBP jumps above 0.7280, pound receives double blow

FXStreet (Mumbai) - The cross in the EUR/GBP shaved-off loss and inched higher in the European morning, after the pound suffered badly after UK’s trade data and industrial production figures disappointing markets.

EUR/GBP rises from 0.7260 post UK data

Currently, the EUR/GBP pair turned positive at 0.7280, spiking to fresh session highs shortly after the data releases. The EUR/GBP cross wiped-out losses after the pound sharply fell following the release of trade balance and industrial figures from the UK economy.

UK trade deficit widened above estimates to £3.4 billion while the total industrial production, which includes extraction of oil and gas from the North Sea, extended the drop by 0.4% between June and July.

UK manufacturing continued to face headwinds and declined a marked 0.8% on a month-on-month basis, down from a growth of 0.2% in June, and significantly below market expectations.

However, the upside remains capped as the euro remains weaker against the US dollar amid risk-on sentiment intensifying during the European trading hours.

EUR/GBP Technical Levels

To the upside, the next resistance is located at 0.7324 (Aug 31 High) levels and above which it could extend gains 0.7400 levels. To the downside immediate support might be located at 0.7239 (Sept 8 Low) below that at 0.7200.
For more information, read our latest forex news.

No comments:

Post a Comment