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EUR/GBP hits fresh lows below 0.7235 post UK data

FXStreet (Mumbai) - The pound outperformed the shred currency in the European morning; dragging EUR/GBP into red, as the pound remains boosted by upbeat UK factory activity which came in at an eight month high.

EUR/GBP drops from 0.7242

Currently, the EUR/GBP cross trades lower near fresh session lows at 0.7231, down -0.10% on the day. The cross in EUR/GBP turned in to the negative territory as sterling received fresh impetus after UK factory sectored performed exceptionally well in the first quarter of this year, rebounded from a tentative slow-down at the end of last year.

Markit's manufacturing PMI came in at 54.4, compared to a reading of 54.1 in February, and remained in expansion territory for the 25th consecutive month. The reading is in line with expectations.

On the other hand, euro remains muted versus the greenback despite upbeat PMI readings across the Euro area economies as Greece concerns continue to weigh on the shared currency.

Meanwhile, traders now focus US employments data and manufacturing PMI reading for major impacts on EUR/GBP.

EUR/GBP Levels to consider

To the upside, the next resistance is located at 0.7285 (5-DMA) and above which it could extend gains to at 0.7305 (50-DMA) levels. To the downside immediate support might be located at 0.7200 levels below that at 0.7167 levels.

EUR/GBP to hold the sideways trading pattern – KBC

The KBC Bank Research Team maintains a neutral/ wait-and-see bias on EUR/GBP.
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