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18 Mar 2015
EUR/GBP hits fresh 2-week highs above 0.7230 on dismal UK data
FXStreet (Mumbai) - The pound got smashed by the shared currency in the mid-European session, taking EUR/GBP to fresh two week highs beyond 0.72 barrier after UK’s jobs and wages data disappointed markets.
EUR/GBP jumps from 0.7180 post data
Currently, the EUR/GBP cross climbs 0.65% and trades near fresh session highs of 0.7233 levels after the data release. The cross in EUR/GBP added further gains as the sterling got hammered against the euro on worse than expected UK employment and wages data, while BOE minutes echoed the dovish tone with a unanimous vote.
The latest unemployment data from the UK showed that the jobless rate stayed at 5.7% in February from January’s 5.7%, while average weekly earnings edged lower from 1.7% to 1.6%. Also, all members of the bank’s Monetary Policy Committee (MPC) voted unanimously to maintain the base interest rate at the record low of 0.5%, the minutes revealed today.
On the other hand, euro remains supported across the board above 1.06 on the US dollar weakness ahead of FOMC statement later tonight.
Later in the session, the final full-year budget of the UK parliament will be presented by Finance Minister George Osborne ahead of May's general election.
EUR/GBP Levels to consider
To the upside, the next resistance is located at 0.7250 and above which it could extend gains to at 0.7300 levels. To the downside immediate support might be located at 0.7170 levels below that at 0.7120 levels.
EUR/GBP jumps from 0.7180 post data
Currently, the EUR/GBP cross climbs 0.65% and trades near fresh session highs of 0.7233 levels after the data release. The cross in EUR/GBP added further gains as the sterling got hammered against the euro on worse than expected UK employment and wages data, while BOE minutes echoed the dovish tone with a unanimous vote.
The latest unemployment data from the UK showed that the jobless rate stayed at 5.7% in February from January’s 5.7%, while average weekly earnings edged lower from 1.7% to 1.6%. Also, all members of the bank’s Monetary Policy Committee (MPC) voted unanimously to maintain the base interest rate at the record low of 0.5%, the minutes revealed today.
On the other hand, euro remains supported across the board above 1.06 on the US dollar weakness ahead of FOMC statement later tonight.
Later in the session, the final full-year budget of the UK parliament will be presented by Finance Minister George Osborne ahead of May's general election.
EUR/GBP Levels to consider
To the upside, the next resistance is located at 0.7250 and above which it could extend gains to at 0.7300 levels. To the downside immediate support might be located at 0.7170 levels below that at 0.7120 levels.