EUR/GBP dips to lows near 0.8350 on UK data

The solid performance of the British Pound today is dragging EUR/GBP to fresh daily lows in the mid-0.8300s.

EUR/GBP weaker post-UK CPI

The European cross met extra downside pressure after UK’s inflation figures tracked by the CPI showed consumer prices rising more than initially estimated at an annualized 1.2% during November and 0.2% inter-month. Core prices have also followed suit, up 1.4% on a yearly basis vs. 1.3% expected.

On this side of the Channel, German ZEW Survey for the current month saw the Economic Sentiment at 13.8 vs. 14.0 forecasted while Current Situation came at 63.5 vs. 59.1 previously estimated. The Economic Sentiment for the broader EMU has improved to 18.1, up from November’s 15.8.

In the meantime, EUR/GBP has come to test fresh multi-day lows around 0.8350, at the same opening the door for a potential test of sub-0.8300 levels seen on December 5.

EUR/GBP key levels

The cross is now retreating 0.41% at 0.8353 facing the next support at 0.8298 (low Dec.5) ahead of 0.8248 (low Jul.14) and then 0.8119 (high Apr.7). On the other side, a surpass of 0.8482 (20-day sma) would aim for 0.8575 (high Dec.8) and finally 0.8639 (100-day sma).