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5 Apr 2013
Forex: EUR/GBP retraces losses on UK and EMU data
FXstreet.com (Barcelona) - The EUR/GBP recovered from 0.8478 low back to a flat level on the day and going as high as 0.8496 as data in the UK and Eurozone get released. The market is still more biased to the downside, at 0.8488 as of writing.
Eurostat revealed the first reading for GDP Q1 2013, coming at -0.6%. EMU retail sales contracted by -0.3% in February, more than the -0.2% expected and after a +1.2% rise in the previous month. The annualized figure rebounded from -1.9% (revised from -1.3%) to -1.4%, while market consensus was pointing to -1.8%. In the UK, Halifax house prices came in at 0.2% (MoM) and 1.1% (YoY) as expected in March, from 0.5% and 1.9%, respectively.
German factory orders are still due and market consensus bets a 1.2% monthly rise in February, with an annualized rebound from -2.5% to -1.5%.
“While we would allow for a near term rebound from the 0.8417 low, we remain unconvinced that the market is ready to resume its upmove and suspect that the market will struggle on a rally to the 55 day ma at 0.8577”, wrote Commerzbank analyst Karen Jones.
Eurostat revealed the first reading for GDP Q1 2013, coming at -0.6%. EMU retail sales contracted by -0.3% in February, more than the -0.2% expected and after a +1.2% rise in the previous month. The annualized figure rebounded from -1.9% (revised from -1.3%) to -1.4%, while market consensus was pointing to -1.8%. In the UK, Halifax house prices came in at 0.2% (MoM) and 1.1% (YoY) as expected in March, from 0.5% and 1.9%, respectively.
German factory orders are still due and market consensus bets a 1.2% monthly rise in February, with an annualized rebound from -2.5% to -1.5%.
“While we would allow for a near term rebound from the 0.8417 low, we remain unconvinced that the market is ready to resume its upmove and suspect that the market will struggle on a rally to the 55 day ma at 0.8577”, wrote Commerzbank analyst Karen Jones.