2 Sep 2013
EUR/GBP capped by 0.8500 despite better PMI
FXstreet.com (Athens) - Despite better PMI on behalf of Euro zone and its power horse Germany, the EUR/GBP is trading below 0.8500 area.
Will the UK PMI release push further the EUR/GBP?
The EUR/GBP pushed heavily during the opening weekly Asian session on Sunday. The release of UK manufacturing PMI survey for August is expected to reveal a further improvement in confidence in the
sector, which is lagging that of the services and construction sectors. According to BTMU FX RESEARSCH “The pound has outperformed overnight with EUR/GBP breaking below the 0.8500-level. The break of technical support appears to have encouraged further pound demand in the near-term rather than an improvement in
short-term fundamental drivers. However, the scope for the pound to strengthen further on the back of
higher UK short rates from here appears limited with positive economic data surprises close to previous historical peaks. The improving cyclical momentum will also be evident in the release of the final euro-zone
manufacturing PMI surveys for August “.
Technical outlook on EUR/GBP
At the time of writing the pair is trading at 0.8494, down 0.13%. The FXstreet.com Trend Index shows the pair to be slightly bullish. Daily pivot point support can be found at 0.8484, 0.8460, 0.8420 and resistance at 0.8600, 0.8622, 0.8698 respectively
Will the UK PMI release push further the EUR/GBP?
The EUR/GBP pushed heavily during the opening weekly Asian session on Sunday. The release of UK manufacturing PMI survey for August is expected to reveal a further improvement in confidence in the
sector, which is lagging that of the services and construction sectors. According to BTMU FX RESEARSCH “The pound has outperformed overnight with EUR/GBP breaking below the 0.8500-level. The break of technical support appears to have encouraged further pound demand in the near-term rather than an improvement in
short-term fundamental drivers. However, the scope for the pound to strengthen further on the back of
higher UK short rates from here appears limited with positive economic data surprises close to previous historical peaks. The improving cyclical momentum will also be evident in the release of the final euro-zone
manufacturing PMI surveys for August “.
Technical outlook on EUR/GBP
At the time of writing the pair is trading at 0.8494, down 0.13%. The FXstreet.com Trend Index shows the pair to be slightly bullish. Daily pivot point support can be found at 0.8484, 0.8460, 0.8420 and resistance at 0.8600, 0.8622, 0.8698 respectively