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14 Aug 2013
EUR/GBP supported 0.8540
FXstreet.com (Barcelona) - EUR/GBP has been bid on the lows at 0.8541 and currently prints between 0.8550/56.
EUR/GBP was bid post German GDP numbers and positive French data in the European markets with German GDP (Q2) improving YoY at 0.9% vs 0.3% consensus and -1.6% previous. The pair was testing the 0.8600 handle on the back of the EZ data, while GDP took the member nation out of recession, but the focus quickly turned towards the UK Claimant Count Change which was the mover. This came in much better than expected for July at -29.2K vs -15k consensus. The unemployment rate arrived inline with expectations 7.8% and at the same time, the vote from the MPC to leave rates was unanimous, confirming Carney has all his members backing him. However, there was a surprise dissent by Martin Weale over the forward guidance has suggested that the old hawk / dove divisions within the MPC still remain despite Carney now being in charge. The dovish contingent still looking at more QE as an option so markets will now remain at the whim of rates markets and data releases going forward.
EUR/GBP supported ahead of key area
Axel Rudolph, Senior Technical Analyst at Commerzbank said, at present, unexpected failure at 0.8532 will push the 0.8500 region and the June low at 0.8470 back into the picture. The 20 dma 0.8638, the 50 dma is 0.8587, 200 dma 0.8445. RSI (14) reads 31. Supports are ascending from 0.8441, 0.8464, 0.8512 and 0.8535. Spot is currently 0.8550 while resistances are 0.8610, 0.8625, 0.8679 and 0.8730.
EUR/GBP was bid post German GDP numbers and positive French data in the European markets with German GDP (Q2) improving YoY at 0.9% vs 0.3% consensus and -1.6% previous. The pair was testing the 0.8600 handle on the back of the EZ data, while GDP took the member nation out of recession, but the focus quickly turned towards the UK Claimant Count Change which was the mover. This came in much better than expected for July at -29.2K vs -15k consensus. The unemployment rate arrived inline with expectations 7.8% and at the same time, the vote from the MPC to leave rates was unanimous, confirming Carney has all his members backing him. However, there was a surprise dissent by Martin Weale over the forward guidance has suggested that the old hawk / dove divisions within the MPC still remain despite Carney now being in charge. The dovish contingent still looking at more QE as an option so markets will now remain at the whim of rates markets and data releases going forward.
EUR/GBP supported ahead of key area
Axel Rudolph, Senior Technical Analyst at Commerzbank said, at present, unexpected failure at 0.8532 will push the 0.8500 region and the June low at 0.8470 back into the picture. The 20 dma 0.8638, the 50 dma is 0.8587, 200 dma 0.8445. RSI (14) reads 31. Supports are ascending from 0.8441, 0.8464, 0.8512 and 0.8535. Spot is currently 0.8550 while resistances are 0.8610, 0.8625, 0.8679 and 0.8730.