Thursday’s trade saw EUR/GBP within the range of 0.7967 and 0.7938, the lowest since August 13th. The pair closed at 0.7948, losing 0.14% on a daily basis.
At 6:24 GMT today EUR/GBP was down 0.09% for the day to trade at 0.7940. The pair held in a daily range of 0.7939 – 0.7950.
Fundamental view
Eurozone
Unemployment within the Eurozone probably remained unchanged at 11.5% in July, Eurostat will report at 09:00 GMT.
Meanwhile, consumer prices likely rose by an annualized 0.3% in August, according to preliminary data, compared to 0.4% in July. If confirmed, this would be the lowest gain since October 2009.
Core consumer prices, which exclude the more volatile food, energy, alcohol and tobacco products, are expected to have risen by 0.8%, the same as in July.
Germany
Destatis reported that Germanys retail sales rose by an annualized 0.7% in July from 0.1% in June, underperforming analysts projections for a 1.5% jump. Month-on-month, purchases at retail stores slid by 1.4% following a downward-revised 1.0% rise a month earlier. Economists had projected a 0.1% increase.
Spain
Purchases at retail stores in Spain are likely to have grown at a slower rate in July. Spains National Institute of Statistics is expected to report that retail sales rose by an annualized 0.1% in July, following a 0.2% jump in June.
Additionally, Bank of Spain is expected to report at 08:00 GMT that Spains current account deficit widened to $1.1 billion in June from $0.584 billion in May.
A separate report by the Ministry of Industry, Tourism and Trade is likely to show that Business Confidence in the Eurozones fourth-biggest economy remained unchanged in August.
Italy
A slate of economic data from Italy is due today.
Italys National Institute of Statistics is expected to report at 08:00 GMT that unemployment in the Eurozones third-largest economy remained unchanged in July at 12.3%.
Later, at 09:00 GMT, Istat will release its preliminary consumer prices report. The annualized preliminary consumer price index probably marked a 0.2% contraction in August, after a month ago the final CPI stood at 0.1%. Month-on-month, consumer inflation is projected at 0.1% after declining 0.l% in July.
The nations annualized preliminary CPI for August, evaluated in accordance with the harmonized methodology, probably contracted 0.1%, compared to remaining flat in July. Month-on-month, Italys HICP probably declined by 0.1% after a 2.1% contraction a month earlier.
Due at 10:00 GMT, Istat will report on Italys second-quarter economic expansion. The statistics agencys data is likely to show that the Italian economy contracted by an annualized 0.3% in the three months through June, after declining 0.4% in Q1. Quarter-on-quarter, the Italian economy is projected to have shrunk by 0.2%, from -0.1% in the first quarter.
United Kingdom
In the UK, Nationwide reported that housing prices surged 11.0% on an annual basis in August, compared to 10.6% in July. Month-on-month, prices of homes with mortgages backed by Nationwide rose by 0.8%, outstripping the previous months upward-revised 0.2% rise.
Separately, the Office for National Statistics is expected to report that business investments improved in the second quarter. According to preliminary data, the respective indicator is projected to come in at an annualized 10.8%, up from 10.6% in the previous three months, while on a quarterly basis business investments probably rose by 2%, compared to 5% in Q1.
Business Investment indicator measures the change in the total inflation-adjusted value of capital expenditures made by private companies. Robust growth in business investments are indicative of overall growth and activity in the UK economy. As such, rising and better-than-expected values of the indicator as seen as bullish for the pound, and vice versa.
Technical view
According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 0.7951. In case EUR/GBP manages to breach the first resistance level at 0.7964, it will probably continue up to test 0.7980. In case the second key resistance is broken, the pair will probably attempt to advance to 0.7993.
If EUR/GBP manages to breach the first key support at 0.7935, it will probably continue to slide and test 0.7922. With this second key support broken, movement to the downside will probably continue to 0.7906.
The mid-Pivot levels for today are as follows: M1 – 0.7914, M2 – 0.7929, M3 – 0.7943, M4 – 0.7958, M5 – 0.7972, M6 – 0.7987.
In weekly terms, the central pivot point is at 0.7997. The three key resistance levels are as follows: R1 – 0.8023, R2 – 0.8055, R3 – 0.8081. The three key support levels are: S1 – 0.7965, S2 – 0.7939, S3 – 0.7907.
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