30 Oct 2013
EUR/GBP printing weeks low
FXstreet.com (London) - EUR/GBP is printing a fresh low for the week in response to poorer data from the EZ. The pair is currently oscillating around 0.8560 with a low of 0.8557.
Cristian Maggio, Senior Emerging Markets Strategist, Rates and FX Research at TD Securities explained this morning’s German unemployment data was just a bit softer than expected, with the number of unemployed increasing by 2K in October (mkt flat) but the unemployment rate remaining unchanged at 6.9%, in line with consensus. “What’s been more interesting so far this morning has been the regional German CPI data, which points to the national number falling from 1.6% to 1.4% Y/Y when reported later today, 0.1ppts lower than expected. With Spanish CPI also coming in soft this morning, this points to downside risks for tomorrow’s Eurozone CPI print, and leaves the ECB in a position to reinforce its dovish message next week and underline the point that a strong currency will only exacerbate the downside potential for inflation forecasts”. The UK has the Gfk Consumer Confidence (Oct) up later.
EUR/GBP Levels
The 20 DMA is 0.8478, the 50 DMA is 0.8464 and the 200 DMA is 0.8536. RSI (14) reads 56.01. Supports are ascending from 0.8443, 0.8472, 0.8490, 0.8520, 0.8564, 0.8603, 0.8651, 0.8667 and 0.8679.
Cristian Maggio, Senior Emerging Markets Strategist, Rates and FX Research at TD Securities explained this morning’s German unemployment data was just a bit softer than expected, with the number of unemployed increasing by 2K in October (mkt flat) but the unemployment rate remaining unchanged at 6.9%, in line with consensus. “What’s been more interesting so far this morning has been the regional German CPI data, which points to the national number falling from 1.6% to 1.4% Y/Y when reported later today, 0.1ppts lower than expected. With Spanish CPI also coming in soft this morning, this points to downside risks for tomorrow’s Eurozone CPI print, and leaves the ECB in a position to reinforce its dovish message next week and underline the point that a strong currency will only exacerbate the downside potential for inflation forecasts”. The UK has the Gfk Consumer Confidence (Oct) up later.
EUR/GBP Levels
The 20 DMA is 0.8478, the 50 DMA is 0.8464 and the 200 DMA is 0.8536. RSI (14) reads 56.01. Supports are ascending from 0.8443, 0.8472, 0.8490, 0.8520, 0.8564, 0.8603, 0.8651, 0.8667 and 0.8679.