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19 May 2015
EUR/GBP recovers to 0.7200 on UK data
FXStreet (Mumbai) - The shared currency recovered half its slide versus the British pound in the European session, with EUR/GBP retracing back toward 0.72 handle, largely as the pound was hammered after UK’s economy slipped in to deflation, UK CPI figures confirmed today.
EUR/GBP tests 0.72 on softer UK CPI
Currently, the EUR/GBP cross trades -0.46% lower at 0.7197, recovering from 0.7150 session lows post data release. The cross in EUR/GBP erased partial losses after sterling was heavily sold-off following softer UK prices pressures print. The dismal inflation figures scaled back BOE rate hike bets this year weighing on the British currency.
The annual rate of UK Consumer Price Index (CPI) slipped to -0.1% in April, down from zero measured in the two months before and the lowest level ever recorded since the official data series began in 1996, the Office for National Statistics (ONS) informed on Tuesday.
On the EUR side of the story, the shared currency remains heavily offered after a couple of ECB officials hinted that the QE program may be extended if required.
Meanwhile, the cross now awaits the crucial German ZEW numbers and EZ CPI 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 tests 0.72 on softer UK CPI
Currently, the EUR/GBP cross trades -0.46% lower at 0.7197, recovering from 0.7150 session lows post data release. The cross in EUR/GBP erased partial losses after sterling was heavily sold-off following softer UK prices pressures print. The dismal inflation figures scaled back BOE rate hike bets this year weighing on the British currency.
The annual rate of UK Consumer Price Index (CPI) slipped to -0.1% in April, down from zero measured in the two months before and the lowest level ever recorded since the official data series began in 1996, the Office for National Statistics (ONS) informed on Tuesday.
On the EUR side of the story, the shared currency remains heavily offered after a couple of ECB officials hinted that the QE program may be extended if required.
Meanwhile, the cross now awaits the crucial German ZEW numbers and EZ CPI 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.