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1 Feb 2016
EUR/GBP ignores EZ PMI, stays below 0.76
FXStreet (Mumbai) - The EUR/GBP cross completely ignored a better-than-expected German PMI and upbeat Eurozone PMI and stays below 0.76 handle.
EZ PMIs losing relevance?
The Eurozone PMI figures not longer influence the pair as they did before the ECB got stuck at the near zero interest rates. Since introducing negative deposit rates (since EUR became funding currency), it is more focused on the overall market sentiment.
The Eurozone PMIs, industrial production receive little attention. The upbeat German PMI released today failed to strengthen the EUR. Consequently, the cross stays weak around 0.7590 levels. Next on tap is the UK manufacturing PMI and it almost always triggers action in the GBP pairs.
EUR/GBP Technical Levels
The immediate support is seen at 0.7573 (23.6% of 0.6981-0.7755), under which the cross could dip to 0.7525 (Jan 22 low). On the other hand, a break above 0.76 could see the pair re-test 0.7666 (Jan 27 high).
EZ PMIs losing relevance?
The Eurozone PMI figures not longer influence the pair as they did before the ECB got stuck at the near zero interest rates. Since introducing negative deposit rates (since EUR became funding currency), it is more focused on the overall market sentiment.
The Eurozone PMIs, industrial production receive little attention. The upbeat German PMI released today failed to strengthen the EUR. Consequently, the cross stays weak around 0.7590 levels. Next on tap is the UK manufacturing PMI and it almost always triggers action in the GBP pairs.
EUR/GBP Technical Levels
The immediate support is seen at 0.7573 (23.6% of 0.6981-0.7755), under which the cross could dip to 0.7525 (Jan 22 low). On the other hand, a break above 0.76 could see the pair re-test 0.7666 (Jan 27 high).