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31 Mar 2015
EUR/GBP: Pound spikes to fresh 6-day highs above 0.7260
FXStreet (Mumbai) - The pound continued to hammer the shared currency in the European morning, dragging EUR/GBP to fresh six days lows after final estimate of UK Q4 2014 GDP surprised markets on the upside boosting sterling.
EUR/GBP falls to 0.7261 post UK data
Currently, the EUR/GBP cross trades lower at 0.7274, down -0.57% on the day, quickly retreating from close to fresh one week lows reached at 0.7261 levels after the data release.. The cross in EUR/GBP remained in red largely on the broad euro weakness and fell further after the pound received impetus from better than forecast UK GDP and current account numbers.
UK economy grew at a pace of 0.6% in Q4 2014, revised up by one percentage point from the previous two estimates, and unchanged when compared with Q3 2014, which was to 0.6%. While, the UK's current account deficit narrowed to £25.3 billion in Q4, down from a revised deficit of £27.7 billion in Q3, but above estimates.
On the other hand, the euro remains pressured across the board weighed down by looming Greece concerns and a stronger US dollar. Meanwhile, traders now focus on the first estimate of Euro zone CPI for major impacts on EUR/GBP.
EUR/GBP Levels to consider
To the upside, the next resistance is located at 0.7300 and above which it could extend gains to at 0.7341 levels. To the downside immediate support might be located at 0.7220 levels below that at 0.7200 levels.
EUR/GBP falls to 0.7261 post UK data
Currently, the EUR/GBP cross trades lower at 0.7274, down -0.57% on the day, quickly retreating from close to fresh one week lows reached at 0.7261 levels after the data release.. The cross in EUR/GBP remained in red largely on the broad euro weakness and fell further after the pound received impetus from better than forecast UK GDP and current account numbers.
UK economy grew at a pace of 0.6% in Q4 2014, revised up by one percentage point from the previous two estimates, and unchanged when compared with Q3 2014, which was to 0.6%. While, the UK's current account deficit narrowed to £25.3 billion in Q4, down from a revised deficit of £27.7 billion in Q3, but above estimates.
On the other hand, the euro remains pressured across the board weighed down by looming Greece concerns and a stronger US dollar. Meanwhile, traders now focus on the first estimate of Euro zone CPI for major impacts on EUR/GBP.
EUR/GBP Levels to consider
To the upside, the next resistance is located at 0.7300 and above which it could extend gains to at 0.7341 levels. To the downside immediate support might be located at 0.7220 levels below that at 0.7200 levels.