9 Mar 2015
EUR/GBP clings on to 0.7200 on German data
FXStreet (Mumbai) - EUR/GBP steadied above 0.72 threshold in the early European morning, little affected by dismal German trade data which showed that the euro area's largest economy booked a smaller trade surplus in January.
EUR/GBP remains near highs post data
The EUR/GBP pair trades flat at 0.7202, staying close to fresh highs posted at 0.7206 levels before German data. EUR/GBP continues its recovery from fresh seven year lows reached on Friday and remained little affected by downbeat German trade balance data which revealed that Germany posted a smaller trade surplus in the first month of 2015. In addition, exports dropped 2.1% in January, after a revised 2.8% increase in December, missing expectations of a 1.5% decline in exports. Imports dropped 0.3 %, compared with a revised 0.7% drop in December 2014, while markets had expected 0.5% growth.
Moreover, the gains in the EUR/GBP cross remained capped as the pound remains elevated against the US dollar on a profit booking rally.
Meanwhile, traders now focus on Euro group meeting in Brussels later today as the ECB QE is set to begin today amid Greek talks, for further moves on the cross.
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 0.7285 levels. To the downside immediate support might be located at 0.7190 and below that at 0.7177 levels.
EUR/GBP remains near highs post data
The EUR/GBP pair trades flat at 0.7202, staying close to fresh highs posted at 0.7206 levels before German data. EUR/GBP continues its recovery from fresh seven year lows reached on Friday and remained little affected by downbeat German trade balance data which revealed that Germany posted a smaller trade surplus in the first month of 2015. In addition, exports dropped 2.1% in January, after a revised 2.8% increase in December, missing expectations of a 1.5% decline in exports. Imports dropped 0.3 %, compared with a revised 0.7% drop in December 2014, while markets had expected 0.5% growth.
Moreover, the gains in the EUR/GBP cross remained capped as the pound remains elevated against the US dollar on a profit booking rally.
Meanwhile, traders now focus on Euro group meeting in Brussels later today as the ECB QE is set to begin today amid Greek talks, for further moves on the cross.
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 0.7285 levels. To the downside immediate support might be located at 0.7190 and below that at 0.7177 levels.