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22 Feb 2013
Forex: EUR/GBP higher on German IFO
Already edging somewhat higher on the day since the London opening, bouncing from the Asian drop to 0.8624 low, a new boost to the upside was triggered by the release of German IFO February survey results. The EUR/GBP jumped 20 pips to 0.8674.
All three criteria came in higher than expected: Business Climate rose from 104.3 to 107.4 (consensus of 105.0); Current Assessment rose from 108.1 to 110.1 (consensus of 108.5); Expectations rose from 100.6 to 104.6 (consensus of 101.3).
Earlier, German GDP figures confirmed the -0.6% quarterly contraction in Q4. Also out was Italian CPI in January, down from 2.3% to 2.2% (YoY) and from 2.6% to 2.4% (EU Normalized).
“EUR/GBP is approaching the double Fibonacci retracement and the October 2011 high, at 0.8780/0.8830 and we have major divergence of the daily RSI, we consider that the market is highly likely to fail and attention has reverted to its 0.8580 support line, which is now vulnerable”, wrote Commerzbank analyst Karen Jones, pointing to 0.8447/25 February low in case of failure.
All three criteria came in higher than expected: Business Climate rose from 104.3 to 107.4 (consensus of 105.0); Current Assessment rose from 108.1 to 110.1 (consensus of 108.5); Expectations rose from 100.6 to 104.6 (consensus of 101.3).
Earlier, German GDP figures confirmed the -0.6% quarterly contraction in Q4. Also out was Italian CPI in January, down from 2.3% to 2.2% (YoY) and from 2.6% to 2.4% (EU Normalized).
“EUR/GBP is approaching the double Fibonacci retracement and the October 2011 high, at 0.8780/0.8830 and we have major divergence of the daily RSI, we consider that the market is highly likely to fail and attention has reverted to its 0.8580 support line, which is now vulnerable”, wrote Commerzbank analyst Karen Jones, pointing to 0.8447/25 February low in case of failure.