EUR/GBP rebounds from 22-month low after UK data

By FXstreet.com | July 16, 2014 AAA

FXStreet (Córdoba) - The EUR/GBP saw a quick run from 22-month lows to fresh daily highs immediately after the release of UK employment data.



Even though the unemployment fell more than expected in May, wages' grow slowed. Unemployment fell by 121,000 in the 3 months to May and the unemployment fell to 6.5%. However, wages only grew 0.3% YoY, well below the 1.9% rate on inflation.



Soft UK earnings data spurred profit-taking on EUR/GBP shorts and lifted the spot from a low of 0.7898 to a high of 0.7917. At time of writing, the pair is trading at 0.7905, still down 0.11% on the day.



EUR/GBP hits 22-month low



The EUR/GBP fell below the 0.7900 mark for the first time since September 2012 ans hit a low of 0.7898 minutes before the data, as the pound continues to strengthen amid expectations the BoE might hike rates later this year.



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