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19 May 2015
EUR/GBP extends beyond 0.72
FXStreet (Mumbai) - EUR/GBP extends its recovery and trades above 0.72 handle in the European session, largely as the shared currency remains unresponsiveness despite worsening business morale in Germany this month, ZEW gauge showed while EZ CPI came in line with expectations.
EUR/GBP rises from 0.7197
Currently, the EUR/GBP cross trades -0.35% lower at 0.7203, remaining in the same range post data. The cross in EUR/GBP remains pressured supported by broad euro weakness as markets remained more or less unimpressed by mixed Euro zone numbers while poor German ZEW also weighed on market sentiments.
The ZEW Economic Sentiment Index, fell to 41.9 in the fifth month of the year, down from the previous month when the reading stood at 53.3 points. While the inflation rate in the 19 countries sharing the euro recorded zero growth in the fourth month of the year, following a 0.1% fall seen in March.
On the GBP side of the story, the pound was sold-off after UK CPI print showed that the British economy was gripped by deflation, cooling off rate hike expectations.
Meanwhile, the cross now awaits US data later in the day and BOE minutes due tomorrow for further momentum.
EUR/GBP Levels to consider
To the upside, the next resistance is located at 0.7250 and above which it could extend gains to at 0.7280 levels. To the downside immediate support might be located at 0.7150 levels below that at 0.7138 (May 11 Low) levels.
EUR/GBP rises from 0.7197
Currently, the EUR/GBP cross trades -0.35% lower at 0.7203, remaining in the same range post data. The cross in EUR/GBP remains pressured supported by broad euro weakness as markets remained more or less unimpressed by mixed Euro zone numbers while poor German ZEW also weighed on market sentiments.
The ZEW Economic Sentiment Index, fell to 41.9 in the fifth month of the year, down from the previous month when the reading stood at 53.3 points. While the inflation rate in the 19 countries sharing the euro recorded zero growth in the fourth month of the year, following a 0.1% fall seen in March.
On the GBP side of the story, the pound was sold-off after UK CPI print showed that the British economy was gripped by deflation, cooling off rate hike expectations.
Meanwhile, the cross now awaits US data later in the day and BOE minutes due tomorrow for further momentum.
EUR/GBP Levels to consider
To the upside, the next resistance is located at 0.7250 and above which it could extend gains to at 0.7280 levels. To the downside immediate support might be located at 0.7150 levels below that at 0.7138 (May 11 Low) levels.