7 Jan 2015
EUR/GBP hovers near 5-DMA
FXStreet (Mumbai) - The EUR/GBP pair retreated today to trade near the 5-DMA located at 0.7825 levels as the single currency suffered a double blow in the form of domestic deflation and a strong Jobs data in the US.
The pair currently trades 0.27% lower for the day at 0.7828 levels. The early gains were erased after the data in the Eurozone showed deflation in the economy for the first time since 2009. Meanwhile, the US ADP jobs report for December printed well above the consensus estimate at 241K. A better-than-expected US data hit both Euro as well as the Pound. However, the cable still manages to outperform the single currency due to the strength in the 10-yr Gilt yield. On the other hand, a strong US data was a double blow for the EUR/USD pair.
EUR/GBP Technical Levels
The immediate support is located at 0.7825 (5-DMA), under which losses could be extended to 0.7812 (5-DMA). Meanwhile, resistance is seen at 0.7852 and 0.7866 levels.
The pair currently trades 0.27% lower for the day at 0.7828 levels. The early gains were erased after the data in the Eurozone showed deflation in the economy for the first time since 2009. Meanwhile, the US ADP jobs report for December printed well above the consensus estimate at 241K. A better-than-expected US data hit both Euro as well as the Pound. However, the cable still manages to outperform the single currency due to the strength in the 10-yr Gilt yield. On the other hand, a strong US data was a double blow for the EUR/USD pair.
EUR/GBP Technical Levels
The immediate support is located at 0.7825 (5-DMA), under which losses could be extended to 0.7812 (5-DMA). Meanwhile, resistance is seen at 0.7852 and 0.7866 levels.