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Forex: EUR/GBP rises to 0.8479 after German CPI

FXstreet.com (Barcelona) - The EUR/GBP was cornered between 0.8426 and 0.8450/60 area during the London morning but the publication of the preliminary release of the CPI report in Germany triggered a breach of the upper band, allowing the print of a daily high at 0.8479. Besides of the annualized headline figure, at 1.4% in March, data came in higher than expected.

The monthly CPI in Germany came in at 0.5% (consensus of 0.4%) from 0.6% in the prior month, while the HICP came in at 0.4% (consensus of 0.3%), from 0.8%, and the annualized number unchanged at 1.8% (consensus at 1.7%).

“From a longer-term perspective, the recent inability to make any significant new highs and the move below the key support at 0.8445 (11/02/2013 low) suggest a weakening momentum”, wrote MIG Bank analyst Bijoy Kar, pointing to another key support at 0.8266 (16/01/2013 low).

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