Forex: EUR/GBP back to 0.7880
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EUR/GBP
FXstreet.com (Barcelona) - The first 20-pip rally to 0.7880 triggered by Fitch's Riley remarks and the current general positive bias toward the EUR saw a retracement of 50% as the market traded the UK CBI orders (-21 vs -8 consensus) and the public sector net borrowing (£-1795B vs £-2.550B consensus). Afterwards, a return to the upside printed a new daily high, at 0.7887, and the EURGBP is now trying to hold at 0.7880 ahead of the NY opening.
Not only the UK CBI August orders came in much below expectations, but also Fitch's warnings of a possible cut of the triple-A rating on account of the UK's budget deficit are easing the British Pound from early highs.
Commerzbank analysts are bearish on the EURGBP, but being "too soon to drift back towards minor support at 0.7823/13, the analyst Axel Rudolph points to resistance: "Minor resistance below this level can be found around last week's high at 0.7884 and at 0.7913, the 12th and 13th of July high.
Not only the UK CBI August orders came in much below expectations, but also Fitch's warnings of a possible cut of the triple-A rating on account of the UK's budget deficit are easing the British Pound from early highs.
Commerzbank analysts are bearish on the EURGBP, but being "too soon to drift back towards minor support at 0.7823/13, the analyst Axel Rudolph points to resistance: "Minor resistance below this level can be found around last week's high at 0.7884 and at 0.7913, the 12th and 13th of July high.
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