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2 Jun 2015
EUR/GBP defends mild gains below 0.7200
FXStreet (Mumbai) - The shared currency failed to defend 0.72 barrier versus the pound in the mid-European trades, with EUR/GBP slipping back below 0.72 barrier. The cross shaved-off most gains as the GBP bulls jumped back in to bulls riding higher on the latest upbeat UK macro data while the impressive EZ CPI figures failed to lift the sentiment around the euro.
EUR/GBP pressured by rising sterling
Currently, the EUR/GBP cross trades 0.07% higher at 0.7195, giving away 0.72 handle. The cross in EUR/GBP shed gains and steadies as the shared currency was unaffected by upbeat EZ CPI print after consumer prices in the euro area rose 0.3% y/y, following five months of no growth and finally emerged in positive territory.
On the other hand, the pound extends its upward moves beyond 1.5250 versus the greenback as traders continue to cheer better than forecasts UK construction PMI report. In the report, Markit Economics said the UK construction PMI booked 55.9 in May, following the 54.2 seen in April. Markets had anticipated an upturn to 55.0.
EUR/GBP Levels to consider
To the upside, the next resistance is located at 0.7232 (May 19 High) and above which it could extend gains to at 0.7258 (May 11 High) levels. To the downside immediate support might be located at 0.7179 (Today’s Low) levels below that at 0.7142 (June 1 Low) levels.
EUR/GBP pressured by rising sterling
Currently, the EUR/GBP cross trades 0.07% higher at 0.7195, giving away 0.72 handle. The cross in EUR/GBP shed gains and steadies as the shared currency was unaffected by upbeat EZ CPI print after consumer prices in the euro area rose 0.3% y/y, following five months of no growth and finally emerged in positive territory.
On the other hand, the pound extends its upward moves beyond 1.5250 versus the greenback as traders continue to cheer better than forecasts UK construction PMI report. In the report, Markit Economics said the UK construction PMI booked 55.9 in May, following the 54.2 seen in April. Markets had anticipated an upturn to 55.0.
EUR/GBP Levels to consider
To the upside, the next resistance is located at 0.7232 (May 19 High) and above which it could extend gains to at 0.7258 (May 11 High) levels. To the downside immediate support might be located at 0.7179 (Today’s Low) levels below that at 0.7142 (June 1 Low) levels.