EUR/GBP Drops Below 0.80 as UK CPI Beats Estimates
EUR/GBP surrendered gains to print a session low of 0.7998 after the UK
data showed inflation rose at a faster than expected rate in March.
Trades below hourly 200-MA
The
cross turned lower from 0.8028 levels to trade below hourly 200-MA
level of 0.8021 after UK CPI for March came-in at up 0.4% m/m and 0.5%
y/y, both higher than estimates. However, CPI in the first quarter stood
at 0.3% on the year, which is still below the Bank of England Monetary
Policy Committee's forecast in the February Inflation Report of 0.44%.
Nevertheless, cross dipped to a low of 0.8005 before witnessing a slight recovery to 0.8015 only to fall back to 0.80 levels.
EUR/GBP Technical Levels
The
immediate hurdle is noted at 0.8021 (hourly 200-MA), above which the
pair could target 0.8044 (hourly 50-MA). Conversely, acceptance below
0.80 would open doors for a drop to 0.7946 (Mar 24 high).
(Market News Provided by FXstreet)