23 Aug 2013
EUR/GBP is tumbling across the board for a third consecutive day, despite promising German GDP data
FXstreet.com (Athens) - The second estimate of German GDP growth released a bit earlier, showing that the economy can perform well without strong exports; still even the ‘uplifting’ German data, EUR/GBP still continue to move downwards.
Mc Carney still drive the sterling higher as UK solid data prevail.
The second estimate of German Q2 GDP growth shows that the economy can perform well without strong exports. Domestic demand was the main driver of the growth comeback. What’s more, yesterday’s “flash” PMI figures provide further confirmation that the Euro zone economy has left recession behind. But the return to growth remains fragile and uneven. Besides that, this morning’s UK GDP revision should confirm that the economy is in mini-recovery mode and that should be cheered at every level. But it will continue to give the MPC and Mr Carney a headache in their desire to lock in low rates and provide insurance for the recovery.
Technical outlook on EUR/GBP
At the time of writing the pair is trading at 0.8556, down 0.15% and very close to its daily close of 0.8554.The FXstreet.com Trend Index shows the pair to be strongly bearish. Daily pivot point support can be found at 0.8520, 0.8500, 0.8484 and resistance at 0.8600, 0.8622, 0.8698, respectively.
Mc Carney still drive the sterling higher as UK solid data prevail.
The second estimate of German Q2 GDP growth shows that the economy can perform well without strong exports. Domestic demand was the main driver of the growth comeback. What’s more, yesterday’s “flash” PMI figures provide further confirmation that the Euro zone economy has left recession behind. But the return to growth remains fragile and uneven. Besides that, this morning’s UK GDP revision should confirm that the economy is in mini-recovery mode and that should be cheered at every level. But it will continue to give the MPC and Mr Carney a headache in their desire to lock in low rates and provide insurance for the recovery.
Technical outlook on EUR/GBP
At the time of writing the pair is trading at 0.8556, down 0.15% and very close to its daily close of 0.8554.The FXstreet.com Trend Index shows the pair to be strongly bearish. Daily pivot point support can be found at 0.8520, 0.8500, 0.8484 and resistance at 0.8600, 0.8622, 0.8698, respectively.