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3 Sep 2015
EUR/GBP jumps to 0.7375 on awful UK services PMI
FXStreet (Mumbai) - The British pound was smashed by the shared currency in the European morning, driving EUR/GBP to fresh session highs in the upper band of 0.73 handle, following the release of dire UK services sector activity report which slumped to 27-month low.
EUR/GBP eyes 0.7400
Currently, the EUR/GBP pair trades 0.38% higher at 0.7366, spiking to 0.7374 session highs on the data release. The EUR/GBP cross was caught by a fresh bid wave after the traders sold-off the GBP after the UK services sector soured in August which now pushes back BOE rate hike bets for now.
Markit Economic's services PMI came in at 55.6 points in the eighth month of the year, following the 57.4 seen previously. That's the lowest print since May 2013. Market consensus had bet on a reading of 57.7.
Further adding to the positive sentiment around the EUR/GBP, the euro remains bid versus the US dollar supported by the latest series of EZ services PMIs ahead of the critical ECB decision.
EUR/GBP Technical Levels
To the upside, the next resistance is located at 0.7400 levels and above which it could extend gains 0.7423 (Aug 24 High) levels. To the downside immediate support might be located at 0.7323 (Today’s Low) below that at 0.7299 (Sept 1 Low).
EUR/GBP eyes 0.7400
Currently, the EUR/GBP pair trades 0.38% higher at 0.7366, spiking to 0.7374 session highs on the data release. The EUR/GBP cross was caught by a fresh bid wave after the traders sold-off the GBP after the UK services sector soured in August which now pushes back BOE rate hike bets for now.
Markit Economic's services PMI came in at 55.6 points in the eighth month of the year, following the 57.4 seen previously. That's the lowest print since May 2013. Market consensus had bet on a reading of 57.7.
Further adding to the positive sentiment around the EUR/GBP, the euro remains bid versus the US dollar supported by the latest series of EZ services PMIs ahead of the critical ECB decision.
EUR/GBP Technical Levels
To the upside, the next resistance is located at 0.7400 levels and above which it could extend gains 0.7423 (Aug 24 High) levels. To the downside immediate support might be located at 0.7323 (Today’s Low) below that at 0.7299 (Sept 1 Low).