27 Feb 2015
EUR/GBP: Choppy and looking for a base on mid 0.72 handle
FXStreet (Guatemala) - EUR/GBP is trading at 0.7259 with a high of 0.7298 and a low of 0.7256.
EUR/GBP has made attempts at the 0.73 handle but fell shy of this level with strong offers protecting the barrier and sinking the pair down to 0.7272/66 before catching a minor recovery to 0.7280 resistance. A chop between there and the lows continues to play out. CPI's were strong in European trade for EZ countries.
Spanish CPI came in at –1.2% Y/Y (consensus and prior: -1.5%) while Italian CPI was 0.1% Y/Y (consensus: -0.3%, prior: -0.5) and a number of the German Lander to have reported so far have also seen decent upside surprises. German harmonised CPI's beat expectations, month on month 1.0% vs 0.7% expected. "But overall, there is nothing here that is going to change anything for the ECB anytime soon," explained analysts at TD Securities.
EUR/GBP has made attempts at the 0.73 handle but fell shy of this level with strong offers protecting the barrier and sinking the pair down to 0.7272/66 before catching a minor recovery to 0.7280 resistance. A chop between there and the lows continues to play out. CPI's were strong in European trade for EZ countries.
Spanish CPI came in at –1.2% Y/Y (consensus and prior: -1.5%) while Italian CPI was 0.1% Y/Y (consensus: -0.3%, prior: -0.5) and a number of the German Lander to have reported so far have also seen decent upside surprises. German harmonised CPI's beat expectations, month on month 1.0% vs 0.7% expected. "But overall, there is nothing here that is going to change anything for the ECB anytime soon," explained analysts at TD Securities.