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6 May 2013
Forex: EUR/GBP up to 0.8430 area
FXstreet.com (Barcelona) - Further weakness of the British Pound is allowing an upward movement of the EUR/GBP on the NY session, with the cross finally breaching above 0.8430 after extensive sidelined trading at 0.8420 area since Friday’s US session and today’s London session that aimed to try a support at 0.8415.
EMU retail sales contracted -2.4% in March (YoY), down from -1.7% (revised lower from -1.4%) and below -1.9% expectations. On the month, data dropped by -0.1% as expected.
April Services PMI figures are the following: Germany eased only from 50.9 to 49.6 (consensus of 49.2); France rose from 44.1 to 44.3 despite unchanged expectations; Italy beat consensus of 45.8 by jumping from 45.5 to 47.0; Spain dropped from 45.3 to 44.4 (consensus of 45.7). EMU Markit services PMI rose from 46.4 to 47.0, beating consensus of 46.6, and PMI Composite was expected to stay unchanged at 46.5 but improved to 46.9.
Spanish unemployment fell by -46.1K instead of rising 17.1K in April. Data follows a -5.0K drop in March.
“The EUR/GBP has formed an interim low at 0.8398 close to the 38.2% retrace of the 0.7755 - 0.8815 rise seen since last July”, wrote MIG Bank analysts Bijoy Kar and Luc Luyet, expecting further near term strength, however, an eventual break under this level is sought to retest the rising trend-line from the 0.7755 low, currently near 0.8300.
EMU retail sales contracted -2.4% in March (YoY), down from -1.7% (revised lower from -1.4%) and below -1.9% expectations. On the month, data dropped by -0.1% as expected.
April Services PMI figures are the following: Germany eased only from 50.9 to 49.6 (consensus of 49.2); France rose from 44.1 to 44.3 despite unchanged expectations; Italy beat consensus of 45.8 by jumping from 45.5 to 47.0; Spain dropped from 45.3 to 44.4 (consensus of 45.7). EMU Markit services PMI rose from 46.4 to 47.0, beating consensus of 46.6, and PMI Composite was expected to stay unchanged at 46.5 but improved to 46.9.
Spanish unemployment fell by -46.1K instead of rising 17.1K in April. Data follows a -5.0K drop in March.
“The EUR/GBP has formed an interim low at 0.8398 close to the 38.2% retrace of the 0.7755 - 0.8815 rise seen since last July”, wrote MIG Bank analysts Bijoy Kar and Luc Luyet, expecting further near term strength, however, an eventual break under this level is sought to retest the rising trend-line from the 0.7755 low, currently near 0.8300.