EUR/GBP Muted Reaction to UK Jobs Data, awaits EU CPI Print
EUR/GBP Muted Reaction to UK Jobs Data, awaits EU CPI Print
The EUR/GBP
pair broke through 0.7800 handle after the release of UK employment
figures that portrayed better-than-expected picture of the UK labor
market.
Analysts were pricing-in weaker data, but the report delivered a
positive surprise by showing that the number of people claiming
unemployment-related benefits during April declined by 2,400 vs the
expected rise of 4,000. Meanwhile, the unemployment rate held steady at
5.1% and wage price growth for March witnessed a sharp rise to 2.0% from
a growth of 1.8% in the previous month.
Although the reaction to stronger UK jobs report remained muted across
GBP pairs, but was enough to push the EUR/GBP cross a tad below 0.7800
handle. The pair, however, managed to recovery back to 0.7815 as market
players now await to see the final print of the EUR CPI for the month of
April, which if disappoints on the downside now seems to trigger a
fresh leg o weakness or the pair.
Technical levels to watch
Below 0.7800 handle, next support is pegged at 0.7780, which if broken
exposes 0.7735 support ahead of 0.7700 and 0.7650 round figure mark
supports.
Meanwhile on the upside, 0.7820 seems to invites fresh offers, beyond
which 0.7850 and 0.7900 come back in sight. However, in order to negate
any bearish outlook, the pair need to conquer a strong supply zone near
0.7925-30 area.
