12 Feb 2015
EUR/GBP little changed as deflation grips Germany
FXStreet (Mumbai) - EUR/GBP remained in red during the early European session, unmoved by the German prices pressures print which revealed euro area's economic powerhouse CPI turned negative in January, for the first time since September 2009.
Moves away from 7-year lows
The EUR/GBP pair traded lower by -0.13% at 0.7428 levels, in a tight range locked between 0.7419–0.7434 levels. EUR/GBP continued its side trend, little affected by the German CPI data which confirmed that Germany economy sank in to deflation for the first time in over five years. Measured month-on-month, the CPI saw 1.1% decline in the reported month, below preliminary data and forecasts, and coming in well below the zero growth posted in the previous month.
Meanwhile, traders now focus on Euro zone industrial production data and the crucial BOE Inflation report for further momentum on the cross.
EUR/GBP Levels to consider
To the upside, the next resistance is located at 0.7450 and above which it could extend gains to at 0.7500 levels. To the downside immediate support might be located at 0.7400 and below that at 0.7383 levels.
Moves away from 7-year lows
The EUR/GBP pair traded lower by -0.13% at 0.7428 levels, in a tight range locked between 0.7419–0.7434 levels. EUR/GBP continued its side trend, little affected by the German CPI data which confirmed that Germany economy sank in to deflation for the first time in over five years. Measured month-on-month, the CPI saw 1.1% decline in the reported month, below preliminary data and forecasts, and coming in well below the zero growth posted in the previous month.
Meanwhile, traders now focus on Euro zone industrial production data and the crucial BOE Inflation report for further momentum on the cross.
EUR/GBP Levels to consider
To the upside, the next resistance is located at 0.7450 and above which it could extend gains to at 0.7500 levels. To the downside immediate support might be located at 0.7400 and below that at 0.7383 levels.