Forex: EUR/GBP downside held by 0.8500 after UK data

FXstreet.com (Barcelona) - The data load from the UK and the EMU has been fully released and the EUR/GBP was able to hold against further downside at the 0.8500 psychological level. Today’s drop from 0.8566 opening level was due to EUR weakness on Markit PMI data and GBP strength on improving UK retail sales.

UK CBI industrial orders fell from -14 to -15, but came in better than the expected -17. UK PSNB rose from £-10.263B to £4.356B in February, but was much less than the expected £8.250B.

UK retail sales surprised on the upside: +2.1% (vs +0.5% consensus) (MoM), with ex-fuel data up by +1.9% (vs consensus of +0.5%). Annualized data rose from -0.5% to +2.6%, with the ex-fuel figure up from +0.5% to +3.3%.

Disappointing France Markit PMI figures had manufacturing PMI at 43.9 vs 44.3 consensus and services PMI at 41.9 vs 44.0 consensus. German data saw manufacturing dropping from 50.3 to 48.9 (consensus of 50.5) and services fell from 54.7 to 51.6 (consensus of 55.0). The EMU Composite PMI down from 47.9 to 46.5 (consensus of 48.2).

Mataf.net analysts point to 0.8570, 0.8590 and 0.8655. On the downside, supports might be found at 0.8535, 0.8505 and 0.8475.