EUR/GBP drops back below 0.8850

Matías Salord FXStreet

EUR/GBP is falling on Wednesday after a 2-day recovery. UK data pushed the pair to the downside, back under 0.8850.

Downside pressure persists

On Monday EUR/GBP bottomed at 0.8772, the lowest level in two months. From the lows bounced to the upside. The recovery found resistance below 0.8900 and lost momentum.

Today, the pair was moving in a modest range and dropped quickly after the release of the UK retail sales report. Sales rose 1.0% in August, significantly above the 0.2% expected by market consensus. The pound gained momentum across the board and EUR/GBP fell to 0.8824.

UK retail sales unexpectedly jump in August

The euro rebounded from the lows but the bounce was short-lived and at the moment EUR/GBP is moving toward daily lows, trading again below 0.8850.

EUR/GBP technical levels

To the downside, the immediate support might lie at 0.8825 (daily low), followed by 0.8800 and 0.8770/75 (Sep 15 & 18 low). On the upside, resistance could be seen at 0.8885 (daily high), 0.8900 and 0.8980 (Sep 12 & 13 low).

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

EUR/USD weakens as US jobs data trims Fed rate cut bets

The EUR/USD pair trades in negative territory for the third consecutive day near 1.1860 during the early European session on Thursday. Traders will keep an eye on the US weekly Initial Jobless Claims data. On Friday, the attention will shift to the US Consumer Price Index inflation report.

GBP/USD bullish outlook prevails above 1.3600, UK GDP data looms

The GBP/USD pair gains ground near 1.3635, snapping the two-day losing streak during the early European session on Thursday. The preliminary reading of UK Gross Domestic Product for the fourth quarter will be closely watched later on Thursday. The UK economy is estimated to grow 0.2% QoQ in Q4, versus 0.1% in Q1.

Gold remains on the defensive below two-week top; lacks bearish conviction amid mixed cues

Gold sticks to modest intraday losses through the Asian session on Thursday, though it lacks follow-through selling and remains close to a nearly two-week high, touched the previous day. The commodity currently trades above the $5,070 level, down just over 0.20% for the day, amid mixed cues.

UK GDP set to post weak growth as markets rise bets on March rate cut

Markets will be watching closely on Thursday, when the United Kingdom’s Office for National Statistics will release the advance estimate of Q4 Gross Domestic Product. If the data land in line with consensus, the UK economy would have continued to grow at an annualised pace of 1.2%, compared with 1.3% recorded the previous year.

The market trades the path not the past

The payroll number did not just beat. It reset the tone. 130,000 vs. 65,000 expected, with a 35,000 whisper. 79 of 80 economists leaning the wrong way. Unemployment and underemployment are edging lower. For all the statistical fog around birth-death adjustments and seasonal quirks, the core message was unmistakable. The labour market is not cracking.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.