12 May 2015
EUR/GBP wavers around 0.7200 post UK data
FXStreet (Mumbai) - The British pound trimmed losses and edged higher versus shared currency in the European session; dragging EUR/GBP back around 0.72 handle, as better than expected UK’s industrial production data led by a rebound in the mining and quarrying sector activity boosted sterling.
EUR/GBP drops from 0.7214
Currently, the EUR/GBP cross trades 0.61% higher at 0.7200, quickly retracing from 0.7191 dip seen post UK data release. The cross in EUR/GBP shed gains and fell back on the the 0.71 handle after the pound received fresh impetus from the latest UK industrial and manufacturing production data for March which came out above expectations.
The UK's industrial production rose above estimates to 0.5% in March after mining and quarrying output rose to its highest levels in six months and manufacturing performed better than expectations, rising 0.4%, figures from the Office for National Statistics (ONS) showed on Tuesday.
In the previous session, GBP/USD was boosted after the Bank of England (BoE) left its monetary policy unchanged, with the main refinancing rate staying at 0.5% and the QE amount remaining at £375 billion.
On the other hand, the cross remained lifted largely on broad euro strength backed by soaring German bund yields.
Meanwhile, markets now shift their focus towards Wednesday’s employment data and the quarterly Inflation Report from the BOE in absence any major data due to be released later today.
EUR/GBP Levels to consider
To the upside, the next resistance is located at 0.7258 (May 11 High) and above which it could extend gains to at 0.7300 levels. To the downside immediate support might be located at 0.7185 (April 30 Low) levels below that at 0.7133 (April 29 Low) levels.
EUR/GBP drops from 0.7214
Currently, the EUR/GBP cross trades 0.61% higher at 0.7200, quickly retracing from 0.7191 dip seen post UK data release. The cross in EUR/GBP shed gains and fell back on the the 0.71 handle after the pound received fresh impetus from the latest UK industrial and manufacturing production data for March which came out above expectations.
The UK's industrial production rose above estimates to 0.5% in March after mining and quarrying output rose to its highest levels in six months and manufacturing performed better than expectations, rising 0.4%, figures from the Office for National Statistics (ONS) showed on Tuesday.
In the previous session, GBP/USD was boosted after the Bank of England (BoE) left its monetary policy unchanged, with the main refinancing rate staying at 0.5% and the QE amount remaining at £375 billion.
On the other hand, the cross remained lifted largely on broad euro strength backed by soaring German bund yields.
Meanwhile, markets now shift their focus towards Wednesday’s employment data and the quarterly Inflation Report from the BOE in absence any major data due to be released later today.
EUR/GBP Levels to consider
To the upside, the next resistance is located at 0.7258 (May 11 High) and above which it could extend gains to at 0.7300 levels. To the downside immediate support might be located at 0.7185 (April 30 Low) levels below that at 0.7133 (April 29 Low) levels.