- Euro is snapping a four-day streak with gains against the pound.
- EUR / GBP faces resistance at 0.8530 / 35 and loses steam.
EUR / GBP could not stay above 0.8530 and lost momentum, falling to 0.8512, the new low of the day and where it operates. Inflation data from the UK and the Eurozone did not have a significant impact.
Inflation data in the United Kingdom and Eurozone
In the Eurozone The final inflation reading for July was released, which showed no surprises and ratified the preliminary reading. The consumer price index fell 0.1% in July, and rose 2.2% from a year ago.
Prior to said report, the evolution of retail and wholesale inflation in the United Kingdom was known. The first surprised with numbers below expectations and the second with higher figures. The consumer price index remained unchanged in July and rose 2% compared to twelve months ago (lower than the 2.2% expected and the 2.5% registered in June).
The EUR / GBP rose after the UK data, but then it lost steam and erased the gains falling to a daily low at 0.8512, where it is located in the previous one of the American session.
The tone remains in favor of the euro in general, but the moment has diminished after not being able to hold on 0.8530. The 0.8510 / 15 area is a strong support that, if given, would open the door to a test at 0.8500. To the upside, a confirmation above 0.8535 would point to further gains in EUR / GBP.
Technical levels
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