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21 Aug 2015
EUR/GBP dips to lows near 0.7160, ignores upbeat German PMI
FXStreet (Mumbai) - The EUR/GBP cross shaved-off early gains and fell to fresh session lows in the European morning, as the shared currency gave away most gains and trades muted following the release of German manufacturing PMI report.
EUR/GBP drops from 0.7175 on data
Currently, the EUR/GBP pair trades flat at 0.7162, having faced rejection at 0.7195 in early trades. The EUR/GBP cross remains largely muted with the European currency unimpressed by the German manufacturing activity hitting a 16-month high.
The flash manufacturing purchasing manager's index (PMI) for the German manufacturing sector shot up to 53.2 points in August from 51.8 booked in July.
Oliver Kolodseike, economist at Markit noted, "Germany’s private sector economy shifted into a higher gear in August, with output and new orders both increasing at the sharpest rates in four months. Moreover, the survey data highlighted that workers continued to feel the benefit of stronger demand, with many companies adding further to their payrolls.”
On the other hand, GBP/USD remained well bid above 1.57 barrier mainly due to broad based US dollar weakness stemming from the recent FOMC minutes which revealed that Fed rate lift-off this Sept looks improbable. Meanwhile, markets now await EMU PMI for further momentum on the pair.
EUR/GBP Technical Levels
To the upside, the next resistance is located at 0.7195 (Today’s High) levels and above which it could extend gains 0.7226 (July 10 High) levels. To the downside immediate support might be located at 0.7106 (July 8 Low) below that at 0.7061 (Aug 17 Low).
EUR/GBP drops from 0.7175 on data
Currently, the EUR/GBP pair trades flat at 0.7162, having faced rejection at 0.7195 in early trades. The EUR/GBP cross remains largely muted with the European currency unimpressed by the German manufacturing activity hitting a 16-month high.
The flash manufacturing purchasing manager's index (PMI) for the German manufacturing sector shot up to 53.2 points in August from 51.8 booked in July.
Oliver Kolodseike, economist at Markit noted, "Germany’s private sector economy shifted into a higher gear in August, with output and new orders both increasing at the sharpest rates in four months. Moreover, the survey data highlighted that workers continued to feel the benefit of stronger demand, with many companies adding further to their payrolls.”
On the other hand, GBP/USD remained well bid above 1.57 barrier mainly due to broad based US dollar weakness stemming from the recent FOMC minutes which revealed that Fed rate lift-off this Sept looks improbable. Meanwhile, markets now await EMU PMI for further momentum on the pair.
EUR/GBP Technical Levels
To the upside, the next resistance is located at 0.7195 (Today’s High) levels and above which it could extend gains 0.7226 (July 10 High) levels. To the downside immediate support might be located at 0.7106 (July 8 Low) below that at 0.7061 (Aug 17 Low).