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1 Oct 2013
EUR/GBP under heavy pressure after dismal EZ data
FXstreet.com (Athens) – The EUR/GBP is heading lower today spiking down at 0.8330 area (lowest level since the 17th January of 2013) due to dismal EZ data.
EUR/GBP on the down side, as the power horse of EZ runs out of steam
The EUR/GBP gets back under pressure, due to the fact that today’s data revealed that the Euro zone power horse, i.e. Germany, is moving in a more sluggish mode than assumed, with growing unemployment. Elaborating on, German unemployment unexpectedly increased for a second month in September, in a sign of an uneven recovery in Europe’s largest economy. More precisely, the number of people out of work climbed a seasonally adjusted 25,000 to 2.98 million, after gaining by 9,000 in August, the Nuremberg-based Federal Labor Agency said earlier today. Apart from Germany, Italy also released worse than expected labor data, while regarding the whole Euro zone area, the labor data announced at a bit better rate than the expected one (12.0% versus estimated 12.1% and 12.0%, the prior one). On the other hand, the cross might also got under renewed pressure due to the fact that the UK manufacturing sector continued to expand at a marked pace during September, to round off its strongest quarterly performance since the opening quarter of 2011. Finally, the labor market also showed further signs of improvement, as the rate of job creation climbed to a 28-month peak.
Technical Outlook on EUR/GBP
Karen Jones, Head Technical Analyst at Commerzbank suggests that “EUR/GBP remains under pressure, it has recently stalled ahead of the June low at .8470 and the 38.2% retracement at 0.8500. This resistance is reinforced by the 2 month downtrend at .8506 and we maintain our bearish bias while capped here. Intraday rallies should struggle .8400/5. Focus is on the 0.8332 September low, which is exposed.
EUR/GBP on the down side, as the power horse of EZ runs out of steam
The EUR/GBP gets back under pressure, due to the fact that today’s data revealed that the Euro zone power horse, i.e. Germany, is moving in a more sluggish mode than assumed, with growing unemployment. Elaborating on, German unemployment unexpectedly increased for a second month in September, in a sign of an uneven recovery in Europe’s largest economy. More precisely, the number of people out of work climbed a seasonally adjusted 25,000 to 2.98 million, after gaining by 9,000 in August, the Nuremberg-based Federal Labor Agency said earlier today. Apart from Germany, Italy also released worse than expected labor data, while regarding the whole Euro zone area, the labor data announced at a bit better rate than the expected one (12.0% versus estimated 12.1% and 12.0%, the prior one). On the other hand, the cross might also got under renewed pressure due to the fact that the UK manufacturing sector continued to expand at a marked pace during September, to round off its strongest quarterly performance since the opening quarter of 2011. Finally, the labor market also showed further signs of improvement, as the rate of job creation climbed to a 28-month peak.
Technical Outlook on EUR/GBP
Karen Jones, Head Technical Analyst at Commerzbank suggests that “EUR/GBP remains under pressure, it has recently stalled ahead of the June low at .8470 and the 38.2% retracement at 0.8500. This resistance is reinforced by the 2 month downtrend at .8506 and we maintain our bearish bias while capped here. Intraday rallies should struggle .8400/5. Focus is on the 0.8332 September low, which is exposed.