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EUR/GBP recovers to 0.7130 shrugs off weak German data

FXStreet (Mumbai) - The shared currency recovered partial losses versus the British pound in the European morning; with EUR/GBP steadying above 0.71 handle, despite deteriorating German factory activity as well as services sector growth.

EUR/GBP holds 0.71 on data

Currently, the EUR/GBP cross trades flat at 0.7130, having posted session lows at 0.7117 before data release. The cross in EUR/GBP steadies as traders ignored German factory activity which came in weaker in April, with the respective PMI gauge failing to post another in a series of rebounds.

Markit's PMI for the manufacturing sector fell to 51.9 in April from the 52.8 seen in March. Market had expected a 53.0 result. While services sector slowed down as well, with the respective gauge booking 54.4 in April, compared to the 55.4 seen in March.

On the other hand, the pound fell further into losses against the US dollar amid persistent broad greenback strength as markets now focus on UK retail sales for further momentum.

EUR/GBP Levels to consider

To the upside, the next resistance is located at 0.7168 and above which it could extend gains to at 0.7207 (April 22 High) levels. To the downside immediate support might be located at 0.7100 levels below that at 0.7030 (March 12 Low) levels.

German private sector activity growth slowed in April – Flash PMI reports

The seasonally adjusted Markit Flash Germany Composite Output Index fell from March’s eight-month high of 55.4 to 54.2 in April.
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EUR/JPY drops below 128.00

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