EUR/GBP Loses Ground Near 0.8660 Following UK GDP Data

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EUR/GBP attracts some sellers around 0.8660 after the UK growth numbers data. 

UK Q3 final GDP came in worse than expected, shrinking 0.1% QoQ versus 0% prior.

ECB’s Guindos said it’s premature to start easing monetary policy; November’s German PPI came in worse than expected.

The EUR/GBP cross snaps the two-day winning streak during the early European session on Friday. The cross retraces from the multi-week highs of 0.8685 and currently trades near 0.8660, losing 0.13% on the day.

The latest data from the UK Office for National Statistics revealed on Friday that the nation’s Gross Domestic Product (GDP) for the third quarter (Q3) came in at -0.1% QoQ versus 0% prior. On an annual basis, the GDP growth number arrived at 0.3% from the previous reading of 0.6%. Both figures were weaker than market expectations.

Furthermore, November’s UK Retail Sales rose 1.3% MoM from 0% in October, while Retail Sales ex-Fuel climbed 1.3% MoM versus 0.2% previously.

The European Central Bank (ECB) Vice President Luis de Guindos stated on Thursday that it’s premature to start easing monetary policy. He added that the ECB does not foresee a technical recession in the Eurozone and that the central bank would welcome a deal on EU fiscal reform as it would alleviate market uncertainty.

About the data, the German Producer Price Index (PPI) for November dropped 7.9% YoY from 11% fall in the previous reading, worse than the market expectation of a 7.5% decline. Additionally, the German Gfk Consumer Confidence Survey for January came in at -25.1 versus -27.6, above the consensus of -27.0.  

Later on Friday, the Consumer Confidence from France, Spain, and Italy will be due. However, these figures might have a minimal impact on the markets ahead of the holiday season. EUR/GBP

OVERVIEW Today last price 0.8668 Today Daily Change -0.0004 Today Daily Change % -0.05 Today daily open 0.8672

 

TRENDS Daily SMA20 0.8614 Daily SMA50 0.867 Daily SMA100 0.8639 Daily SMA200 0.8659

 

LEVELS Previous Daily High 0.8686 Previous Daily Low 0.8654 Previous Weekly High 0.8634 Previous Weekly Low 0.8549 Previous Monthly High 0.8766 Previous Monthly Low 0.8614 Daily Fibonacci 38.2% 0.8673 Daily Fibonacci 61.8% 0.8666 Daily Pivot Point S1 0.8656 Daily Pivot Point S2 0.8639 Daily Pivot Point S3 0.8624 Daily Pivot Point R1 0.8687 Daily Pivot Point R2 0.8702 Daily Pivot Point R3 0.8719

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