Filed Under:
Forex pairs in this Article » EUR/GBP (London) - EUR/GBP is enjoying EUR/USD through 1.330 the figure, and goes to test 0.8500 before 0.8510/20 resistance zone

EUR/GBP pulled to 55d ma like a magnet

The 55d ma has long been drawing the price to it like the planet does our moon. Today, we have seen two sides to the story for the pair, with relatively benign data, besides a nice surprise to the upside of the UK economy after the release of a bullish set of change sin the claimant count in the UK labour market. The jobless rate in the UK was expected to stay put at 7.8% and it did so, while the more focused bit of data, the claimant change fell from the previous numbers of -11.8k to -8.6k against a consensus of -5.0k, which is over all bullish for the pound given expectation could be for a higher consumer spending count in the long run benefiting economic growth. In respect to the German data, according to data released today by Destatis, German annual inflation rose 1.5% in May, following 1.1% growth registered the previous month. This result is in line with analysts' forecasts. On a monthly basis German CPI climbed 0.4% in May, after falling 0.5% in April, as expected. Year-over-year German HICP grew 1.6% in May, up from 1.1% in April. On a monthly basis HICP increased 0.3% in May, following a 0.5% fall in April. Both results are in line with consensus.

EUR/GBP tested below the 55 ma

The EUR/GBP has been treading along the 55 ma between April and June. According to Commerzbank analysts, they said we should see this continue to hold the topside for a slide back to the 0.8422 mid-May low. “Failure will leave the market weighing on the downside and target the 2012-13 support line at 0.8370”, Karen Jones, Senior analyst at Commerzbank.
comments powered by Disqus
Trading Center