EURGBP
EURGBP trades to unchanged level as investors digest a set of economic data from Europe and the UK. German PMI and retail sales data beat the forecasts but as of writing failed to boost the common currency.
The UK manufacturing sector activity returned to growth in June. The UK Manufacturing Purchasing Managers’ Index (PMI) came in at 50.1 inline with forecasts and at the same level as May.
On the economic data front from Europe, the Germany Manufacturing PMI registered at 45.2 above the consensus of 44.6 in June. The Unemployment Rate seasonally adjusted came at 6.4%, below the estimates of 6.6% in June. Earlier today the Germany Retail Sales came in at 13.9% above the forecast of 3.9% in May. The yearly reading for the Retail Sales registered in at 3.8% above the expectations of -3.5%.
The German IFO institute came out its projections for the Germa GDP; it now sees Q2 German GDP down 11.9%. It expects Q3 German GDP up 6.9%, while in Q4 German GDP expected 3.8% higher. For the full year, 2020 expects the GDP down 6.7% and forecasts a rebound of 6.4% in 2021.
France Manufacturing PMI came in at 52.3, topping the expectations of 52.1 in June. The Spain Manufacturing PMI came in at 49, also above the expectations of 45.1. On the other hand, June Italy Manufacturing PMI came in at 47.5, below the forecast of 47.7.
EURGBP is 0.02% higher at 0.9060, on a quiet day after yesterday’s sharp losses as investors digest the manufacturing data from Europe and the UK. The technical picture for EURGBP remains bullish despite yesterday’s correction. What can cancel the bullish momentum is a break below the 50-day moving average.
On the downside, the initial support for EURGBP stands at 0.9055 the daily low. A close below 0.9055 might challenge the next support area at 0.9003 the low from June 25 trading session. More support for the pair might emerge at 0.8953 the low from June 18.
On the other hand, immediate resistance for EURGBP pair stands at 0.9079 the daily top. A break above 0.9079 might test the next hurdle at 0.9140 the high from yesterday’s trading session. If the EURGBP breaks higher, then might challenge the next supply zone at 0.9176 the high from June 29.
