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EURGBP Lower on Weak German Economy Data

ftse 100

EURGBP is 0.10% lower at 0.8486 as the euro got hit by weak economic data out of Germany. Germany Industrial Production for December came in at -3.5% below the forecasts of -0.2%. The yearly reading for Germany Industrial Production also was a big miss, the reading came in at -6.8% below the estimates of -4%. The European Monetary Union Sentix Investor Confidence registered in at 5.2 topping the expectations of 4 in February. The figures are before the coronavirus outbreak and that implies that we might get some worse data in the upcoming months. The Euro now has the lowest real yields among the G20 countries. Europe is also more dependent on China than the UK and the coronavirus impact might be a real pain for Euro.

The British pound on the other hand is under pressure on renewed hard Brexit fears and despite stronger economic data the last two weeks from the UK economy. UK Services PMI came in at 53.9 topping the forecasts of 52.9.

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EURGBP Technical Levels to Watch

EURGBP seesaws around the 50-day moving average as the weak sentiment for euro prevails. The momentum id negative for EURGBP while a clear break below the 52-day moving average might accelerate the selling pressures.

On the downside, first support for the EURGBP pair stands at 0.8480 the daily low. Next support area for the EURGBP would provide the low from February 3rd trading session at 0.8407. A move below might open the way for a move down to 0.8359 the low from December 17th.

On the other side, initial resistance for the EURGBP will be met at 0.8504 the daily high. Next resistance zone stands at 0.8539 the high from February 4th session. A bullish break above might test the next resistance at 0.8585 the 100-day moving average.

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