14 Jul 2015
EUR/GBP jumps to highs near 0.7130 on UK CPI
FXStreet (Mumbai) - The EUR/GBP cross remained largely unchanged in the European morning, following the release of UK CPI print, as the pound showed little reaction to the sluggish price pressures print while the European currency accelerated gains ahead of ZEW data.
EUR/GBP supported above 0.71 handle
Currently, the EUR/GBP pair 0.35% higher at 0.7127, hovering close to session highs of 0.7132 printed on the data release. The cross in EUR/GBP remains strongly bid largely on a sudden pick-up in buying seen in the EUR/USD pair.
While the cable remains muted post UK CPI figures released. Inflation in Britain decelerated back to 0.0% in June, down from 0.1% a month before, and in line with market estimates. Core inflation, a less volatile gauge stripped of energy and food prices, slowed to 0.8% - the slowest in six years.
Markets now await fresh incentives from German ZEW and UK inflation hearings reports, while BOE Carney’s testimony will also be closely watched.
EUR/GBP Technical Levels
To the upside, the next resistance is located at 0.7200 levels and above which it could extend gains 0.7224 (July 8 High) levels. To the downside immediate support might be located at 0.7100 below that at 0.7056 (July 5 Low) levels.
EUR/GBP supported above 0.71 handle
Currently, the EUR/GBP pair 0.35% higher at 0.7127, hovering close to session highs of 0.7132 printed on the data release. The cross in EUR/GBP remains strongly bid largely on a sudden pick-up in buying seen in the EUR/USD pair.
While the cable remains muted post UK CPI figures released. Inflation in Britain decelerated back to 0.0% in June, down from 0.1% a month before, and in line with market estimates. Core inflation, a less volatile gauge stripped of energy and food prices, slowed to 0.8% - the slowest in six years.
Markets now await fresh incentives from German ZEW and UK inflation hearings reports, while BOE Carney’s testimony will also be closely watched.
EUR/GBP Technical Levels
To the upside, the next resistance is located at 0.7200 levels and above which it could extend gains 0.7224 (July 8 High) levels. To the downside immediate support might be located at 0.7100 below that at 0.7056 (July 5 Low) levels.