31 Jul 2015
EUR/GBP extends gains after EZ CPI data
FXStreet (Mumbai) - The bid tone on the EUR strengthened further, taking the EUR/GBP pair to a session high of 0.7038 after the official data showed Eurozone core inflation ticked higher in July.
Takes out hourly 50-MA
The spot currently trades above its hourly 50-MA located at 0.7030. The preliminary data in the Eurozone showed inflation remained unchanged at 0.2% in July, but the core inflation ticked higher to 0.9% year-on-year in July from 0.8% in June. The core inflation does not include the volatile food and energy prices.
Moreover, the uptick in the core inflation has overshadowed the disappointing German retail sales figure released earlier today. With no major data due for release today, the spot is at the mercy of the overall market sentiment.
EUR/GBP Technical Levels
The immediate resistance is seen at 0.7053 (hourly 200-MA), above which the gains could be extended to 0.7103 (July 23 high). On the other hand, support is seen at 0.7030 (hourly 50-MA) and 0.70 handle.
Takes out hourly 50-MA
The spot currently trades above its hourly 50-MA located at 0.7030. The preliminary data in the Eurozone showed inflation remained unchanged at 0.2% in July, but the core inflation ticked higher to 0.9% year-on-year in July from 0.8% in June. The core inflation does not include the volatile food and energy prices.
Moreover, the uptick in the core inflation has overshadowed the disappointing German retail sales figure released earlier today. With no major data due for release today, the spot is at the mercy of the overall market sentiment.
EUR/GBP Technical Levels
The immediate resistance is seen at 0.7053 (hourly 200-MA), above which the gains could be extended to 0.7103 (July 23 high). On the other hand, support is seen at 0.7030 (hourly 50-MA) and 0.70 handle.