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28 Jul 2015
EUR/GBP heads southwards after UK GDP
FXStreet (Mumbai) - The EUR/GBP pair dropped to a session low of 0.7072 on the back of a robust UK Q2 GDP figure and stability in the risk sentiment across the major equity markets in Europe.
EUR/GBP: Offered at 0.7129
The pair was offered at the high of 0.7129 earlier today after the major European equity markets opened on a positive note, indicating that the risk sentiment has stabilized. Consequently, the EUR was ditched, which once again underscored the fact that it is increasingly being utilized as a funding currency.
Losses were extended further below 0.71 handle after the official data in the UK showed the economy expanded 0.7% QoQ as expected. Investors cheered the fact that it was the tenth straight expansion. Given the uptick in the major US equity index futures, the markets could continue to ditch low yielding EUR in favour of the GBP.
EUR/GBP Technical Levels
The immediate support is located at 0.7060 (5-DMA), under which the spot could extend losses to 0.7020 (10-DMA). On the flip side, resistance is seen at 0.71 handle and 0.7159 (previous session’s high).
EUR/GBP: Offered at 0.7129
The pair was offered at the high of 0.7129 earlier today after the major European equity markets opened on a positive note, indicating that the risk sentiment has stabilized. Consequently, the EUR was ditched, which once again underscored the fact that it is increasingly being utilized as a funding currency.
Losses were extended further below 0.71 handle after the official data in the UK showed the economy expanded 0.7% QoQ as expected. Investors cheered the fact that it was the tenth straight expansion. Given the uptick in the major US equity index futures, the markets could continue to ditch low yielding EUR in favour of the GBP.
EUR/GBP Technical Levels
The immediate support is located at 0.7060 (5-DMA), under which the spot could extend losses to 0.7020 (10-DMA). On the flip side, resistance is seen at 0.71 handle and 0.7159 (previous session’s high).