- EUR / GBP clings to Thursday’s gains, still close but unable to break 0.8700.
- Preliminary PMI report higher than expected in the UK and Eurozone.
The EUR / GBP is trading at the 0.8680 zone, virtually unchanged from Thursday’s close. The price found support above 0.8670 and rose to 0.8697 before retreating. The euro remains bullish, facing resistance at 0.8700. The current support is located at 0.8670, which if it gives way could favor further pullbacks.
After the ECB, better-than-expected data in Europe
Thursday, the euro had a strong rise against the pound, climbing more than 50 pips. The weakness of the British currency was a key factor in the advance, which continued after the meeting of the European Central Bank (ECB). As expected, the central bank kept monetary policy unchanged. Today President Lagarde will speak at a meeting on capital markets and climate change, although after yesterday’s conference no news is expected.
Regarding data, the preliminary reading of the Eurozone PMI was released on Friday. The manufacturing index beat expectations by climbing to 63.3 in April from 62.5 and beating the expected reading of 62.0. Services advanced to 50.3 against the expected 49.1.
In the UK, the March retail sales report showed a 4.5% advance, well above the 1.5% market consensus. In turn, the manufacturing PMI rose to 60.7 from 59.0 and that of services to 60.1; both exceeding the readings expected by analysts.
Technical levels
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