Yesterday’s trade saw EUR/GBP within the range of 0.7902-0.7934. The pair closed at 0.7918, gaining 0.19% on a daily basis.
At 7:17 GMT today EUR/GBP was up 0.09% for the day to trade at 0.7924. The pair touched a daily high at 0.7927.
Fundamentals
Euro zone
French Business confidence
Business climate in France probably remained without change in November, according to market expectations, with the corresponding gauge being at 97.0. This index reflects entrepreneurs’ sentiment about current business situation in the country and their expectations about business conditions. An index value of 100.0 suggests neutrality. Readings below 90.0 imply unusually high pessimism, while values above 110.0 suggest unusually high optimism among respondents in the survey. Higher-than-anticipated index readings may provide a limited support to the euro. The official data is due out at 7:45 GMT.
Italian Retail sales
Annualized retail sales in Italy probably decreased at a pace of 2.2% in September, according to the median estimate by experts, following another 3.1% drop in August. If so, this would be the fifth consecutive month of decline in sales. In monthly terms, retail sales probably remained flat in September, following three consecutive declines of 0.1% in June, July and August. This indicator reflects the change in the total value of inflation-adjusted sales by retailers in the country and provides key information regarding consumer spending trend, while the latter is a key driving force behind economic growth. In case retail sales index dropped at a faster-than-expected pace, this might have a limited bearish effect on the euro. The National Institute of Statistics (Istat) is expected to release the official report at 9:00 GMT.
United Kingdom
The number of home loans in the United Kingdom, issued by the British Bankers’ Association (BBA), probably decreased to 38 500 in October from 39 271 in September. The latter has been the lowest number since August 2013, when 38 800 loans were issued. The BBA features the major banks in the country, which account for almost 60% of overall mortgage lending. The number of mortgage loans is considered as a leading indicator in regard to UK housing market conditions. As growth in mortgage lending signifies a healthy housing sector, which also contributes to overall economic activity, in case the number of loans rose more than projected, this would boost demand for the sterling. The BBA is to publish the official figure at 9:30 GMT.
Pivot Points
According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 0.7918. In case EUR/GBP manages to breach the first resistance level at 0.7934, it will probably continue up to test 0.7950. In case the second key resistance is broken, the pair will probably attempt to advance to 0.7966.
If EUR/GBP manages to breach the first key support at 0.7902, it will probably continue to slide and test 0.7886. With this second key support broken, the movement to the downside will probably continue to 0.7870.
The mid-Pivot levels for today are as follows: M1 – 0.7878, M2 – 0.7894, M3 – 0.7910, M4 – 0.7926, M5 – 0.7942, M6 – 0.7958.
In weekly terms, the central pivot point is at 0.7953. The three key resistance levels are as follows: R1 – 0.8003, R2 – 0.8092, R3 – 0.8142. The three key support levels are: S1 – 0.7864, S2 – 0.7814, S3 – 0.7725.
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