EUR/GBP deflates from highs, near 0.8650 ahead of data

EUR/GBP keeps navigating a narrow range at the end of the week, currently testing daily lows in the vicinity of 0.8650.

EUR/GBP focus on EMU, UK releases

Choppy week for the European cross so far, broadly in line with the generalized lack of direction in the global markets and highly dependent on RO/RO trends.

Some steady stance around the common currency vs. the recent descent seen in its former European peer has allowed the cross to consolidate levels above the 0.8600 handle, looking to reach Monday’s tops beyond the key barrier at 0.8700.

Later in the morning, EMU’s advanced inflation figures are expected to rise at an annualized 0.4% (from 0.2%) in September, while Core prices are seen advancing 0.9% (from 0.8%). Earlier in the session, German Retail Sales have contracted 0.4% inter-month in August.

Across the Channel, UK’s GDP figures are expected to show the economy has expanded at an annualized 2.2% during the April-June period and 0.6% QoQ.

EUR/GBP key levels

The cross is now losing 0.05% at 0.8649 and a breakdown of 0.8588 (3-month support line) would aim for 0.8555 (low Sep.23) and finally 0.8510 (55-day sma). On the other hand, the next up barrier is located at 0.8717 (high Sep.26) ahead of 0.8727 (2016 high Aug.16).