EURGBP pared early loses and now trades positive after Germany IFO business surveys beat the expectations. The Business Climate came in at 92.6, slightly better than the expectations of 92.2. The Current Assessment registered in at 87.9 above the estimates of 86.9. On the other hand, the Expectations came in at 97.5 below the forecasts of 98 in August. Following the release of the surveys’ Ifo now sees German GDP to grow by 7% in the third quarter.
Germany Gross Domestic Product for the 2020 second quarter came at -9.7% above the expectations of -10.1%. The annualized GDP came in at -11.3% also above the estimates of -11.7%. Germany’s Finance Minister Scholtz commented that the German economy is improving faster than expectations.
UK Retail Sales Disappoint
In the UK, the retail sales disappointed investors showing that still there is a long road to recovery. The CBI Distributive Trade Survey dropped to -6% in August from +4% in July, well below the expectations of 8%. The British pound continues to face the uncertainty around the Brexit negotiations as on more round of discussions the seventh ended without any progress.
EURGBP Daily Technical Analysis
EURGBP is 0.05% lower at 0.9018 as investors looking for direction after the release of the recent economic data. The upside move today stalled at the 50-day moving average as the Euro bulls run out of steam at that resistance for one more time. Bullish investors should wait for a clear break above 0.9037 to initiate any long positions.
In case of a correction first support for the pair stands at 0.9004 the daily low. The next support area is at 0.8945 the low from August 21. The 100-day moving average at 0.8936 would be the next target for bears.
EURGBP Daily Chart