Back
16 Apr 2013
Forex: EUR/GBP rises after UK prices and ahead of EMU CPI
FXstreet.com (Barcelona) - The EUR/GBP eased on the European opening to 0.8524 low and retraced its early gains limited to 0.8545 area. The publication of UK prices data is allowing a move higher, currently at 0.8540.
While annualized headline UK CPI came in unchanged at 2.8% as expected in March, the monthly change was of 0.3% (instead of 0.4% consensus) and Core (YoY) data came in at 2.4% (consensus of 2.3%). In regard to UK PPI, input fell -0.1% (MoM), less than the -0.2% expected, (annualized drop from 2.1% to 0.4% - consensus of 0.8%). Output PPI stayed unchanged at 0.3% (MoM) and 2.0% (YoY), but Core output was lower at 0.1% MoM (consensus of 0.2%) and 1.3% YoY (consensus of 1.4%). UK retail prices disappointed at 0.4%, below the 0.5% expected, but YoY data rose from 3.2% to 3.3% in line with consensus.
EMU CPI and economic sentiment by ZEW are next in line on the economic calendar. UBS analysts are neutral: “The cross is unwinding the sharp sell-off of March. Resistance is at 0.8560 ahead of 0.8602”. wrote analyst Gareth Berry, pointing to support at 0.8463 ahead of 0.8410.
While annualized headline UK CPI came in unchanged at 2.8% as expected in March, the monthly change was of 0.3% (instead of 0.4% consensus) and Core (YoY) data came in at 2.4% (consensus of 2.3%). In regard to UK PPI, input fell -0.1% (MoM), less than the -0.2% expected, (annualized drop from 2.1% to 0.4% - consensus of 0.8%). Output PPI stayed unchanged at 0.3% (MoM) and 2.0% (YoY), but Core output was lower at 0.1% MoM (consensus of 0.2%) and 1.3% YoY (consensus of 1.4%). UK retail prices disappointed at 0.4%, below the 0.5% expected, but YoY data rose from 3.2% to 3.3% in line with consensus.
EMU CPI and economic sentiment by ZEW are next in line on the economic calendar. UBS analysts are neutral: “The cross is unwinding the sharp sell-off of March. Resistance is at 0.8560 ahead of 0.8602”. wrote analyst Gareth Berry, pointing to support at 0.8463 ahead of 0.8410.