- The euro loses strength after failing to break 0.8550.
- EUR / GBP on its way to close the week unchanged, but weak.
The EUR / GBP erased the gains and is aiming to test the day’s lows which are around 0.8520. Hours ago, after data from the United Kingdom, the cross had climbed to 0.8552, the highest in two days before reversing the intraday trend.
The impossibility of sustaining above 0.8550 implies the validity of the weekly range around 0.8530. Key support is at 0.8500, while to the upside, a confirmation above 0.8560 would leave the euro strengthened.
The latest data from the UK showed lower-than-expected retail sales figures for August, with an unexpected drop of 0.9%, against a rise of 0.5%. The data generated weakness in the pound, which was momentary. EUR / GBP is already at the level it was at the beginning of the day.
In the Eurozone, inflation figures did not generate surprise, nor did they change with respect to preliminary data.
Next week one of the key data will be Europe’s PMI. In addition to the meeting of the Federal Reserve, the decision of the Bank of England will also be known. A continuity in the policy of both banks is expected, but the key will be what they can say about the future of the respective purchase programs. This can trigger volatility in the market and for the crossover.
Technical levels
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