The pair continued to decline overnight after Chinese PMI data underwhelmed expectations despite improving, ushering in negative risk sentiment across markets. Price looked to have found support this morning at 0.8022 but a raft of mixed EU data and generally positive UK data saw the pair extend its declines.
ICN.com analysts note that the failure to consolidate above 0.804 added to the bearish sentiment. With price having just passed their first target at 0.8, they see the next levels of support at 0.7965/07955/0.7925 and resistance at 0.8/0.82/0.8.4.
Whilst the majority of European economic data has finished for the day, we still have the UK CBI Business Trends Survey and the Portuguese Trade Balance at 10:00 GMT, the EU’s Van Rompuy and Barroso are scheduled to meet with China’s Wen at 11:30 GMT whilst the European Systematic Risk Meeting is confirmed but without a scheduled time just yet.
Elsewhere, Equities and most commodities remain lower whilst Spanish and Italian yields have started to gently climb.