FXstreet.com (Barcelona) - From close to the 0.8100 mark, the EUR/GBP plunged all the way to 0.8065 low on the release of the Q3 GDP in the UK. Despite the improving sentiment in the Euro, the British Pound is being target of more demand after the surprisingly positive figures: flat on the yearly basis (above 0.5% consensus) and rising by 1.0% quarterly, instead of 0.6%.
The EMU released its private loans data, falling further from -0.6 to -0.8 in September (YoY). Money supply M3 eased from 2.8% to 2.7% on the yearly basis, and from 3.1% to 3.0% on the 3m basis. Italian wage inflation grew by 0.1% on the monthly basis in September, but eased from 1.6% to 1.4% on the annualized figure.
“EUR/GBP’s erosion of the neckline is somewhat disappointing, however we are currently viewing this as corrective and the market should find interim support at 0.8025/10 and be contained by the 0.7990/.7960 band (55 day ma, Fibonacci retracement and 3 month uptrend)”, wrote Commerzbank analyst Karen Jones, expecting an eventual break higher to 0.8157 and 0.8221.
The EMU released its private loans data, falling further from -0.6 to -0.8 in September (YoY). Money supply M3 eased from 2.8% to 2.7% on the yearly basis, and from 3.1% to 3.0% on the 3m basis. Italian wage inflation grew by 0.1% on the monthly basis in September, but eased from 1.6% to 1.4% on the annualized figure.
“EUR/GBP’s erosion of the neckline is somewhat disappointing, however we are currently viewing this as corrective and the market should find interim support at 0.8025/10 and be contained by the 0.7990/.7960 band (55 day ma, Fibonacci retracement and 3 month uptrend)”, wrote Commerzbank analyst Karen Jones, expecting an eventual break higher to 0.8157 and 0.8221.
