- Inflation rises more in September in the Eurozone than in the United Kingdom.
- EUR / GBP continues to consolidate near lows in months.
EUR / GBP is rising on Wednesday and recently hit 0.8460, marking a new high for the day. In general, the cross continues to consolidate near lows in months, between 0.8420 and 0.8465.
Wednesday’s advance is driven by some weakness in the pound. The bullish tone still it is not enough to get past the key short-term resistance at the 0.8460 / 65 band. If it breaks to the upside, the euro could extend the raises, with the next resistance being at 0.8475 before 0.8500.
Inflation data
Inflation data were released in both the Eurozone and the United Kingdom. Those of the Eurozone did not generate surprise since they maintained the preliminary figures of 3.4% (annual) of the consumer price index. The novelty in the region was the resignation of Jens Weidmann as head of Germany’s central bank, which will also leave him out of the Governing Board of the European Central Bank.
In the United Kingdom, inflation figures were below expectations, which may have favored the weakness of the pound. The CPI rose 0.3% below the expected 0.4%. The ONS reported a 10.6% one-year rise in home prices in August, accelerating from 8.5% in July.
Technical levels
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