Forex: EUR/GBP rises after EMU retail sales
Forex pairs in this Article »
EUR/GBP
FXstreet.com (Barcelona) - While the UK is mostly waiting for the BoE monetary policy decision tomorrow, the EUR is winning the battle on a general improved sentiment after the US election. The EMU retail sales figures have just been released and Germany industrial production comes next.
Retail Sales in the Eurozone fell again by -0.2% in September (consensus of -0.1%), but the annualized figure improved from -0.9% (revised from -1.3%) to -0.8%, beating a consensus of -1.0%. Eurostat points to fuel economization as the biggest drag. Earlier, the Spanish industrial output came in very gloomy with an annualized contraction extending from -2.5% (revised from -3.2%) to -7.0% in September, instead of the -3.6% consensus.
The EURGBP rallied to 0.8031 during the Asian session, but has been correcting the move since, reaching 0.8015 right before the EMU data release. Now, the cross is heading up again.
"We then look for EURGBP to eventually break the uptrend. Technical indicators are more negative and this trendline is now exposed", wrote Commerzbank analyst Karen Jones, pointing to uptrend support at 0.7990/84 ahead of 0.7950 May low. "Failure here would trigger further losses to 0.7913 then 0.7844", Jones added, pointing to key resistance still at 0.8157/65.
Retail Sales in the Eurozone fell again by -0.2% in September (consensus of -0.1%), but the annualized figure improved from -0.9% (revised from -1.3%) to -0.8%, beating a consensus of -1.0%. Eurostat points to fuel economization as the biggest drag. Earlier, the Spanish industrial output came in very gloomy with an annualized contraction extending from -2.5% (revised from -3.2%) to -7.0% in September, instead of the -3.6% consensus.
The EURGBP rallied to 0.8031 during the Asian session, but has been correcting the move since, reaching 0.8015 right before the EMU data release. Now, the cross is heading up again.
"We then look for EURGBP to eventually break the uptrend. Technical indicators are more negative and this trendline is now exposed", wrote Commerzbank analyst Karen Jones, pointing to uptrend support at 0.7990/84 ahead of 0.7950 May low. "Failure here would trigger further losses to 0.7913 then 0.7844", Jones added, pointing to key resistance still at 0.8157/65.
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