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7 Jan 2015
EUR/GBP unperturbed as Euro zone Slips into Deflation
FXStreet (Mumbai) - The single currency traded steady against the British pound today after the 19-Nation bloc Consumer Price Index (CPI) print came out at -0.2%, showing euro zone fell into deflation for the first time since 2009.
The EUR/GBP pair now trades flat at 0.7847 levels, having posted days’ low at 0.7837 levels some minutes ago. The EUR/GBP is expected to remain pressured as the muted Euro zone price pressures print raised speculations that the European Central Bank (ECB) may unveil full-blown QE soon in a move to spur growth in a deflation-stuck economy.
EUR/GBP Levels to consider
To the upside, the next resistance is located at 0.7881 (100-DMA) and above which it could extend gains to at 0.7850 (Jan 5 High) levels. To the downside immediate support might be located at 0.7818 (10-DMA) and below that at 0.7762 (Jan 1 Low) levels.
The EUR/GBP pair now trades flat at 0.7847 levels, having posted days’ low at 0.7837 levels some minutes ago. The EUR/GBP is expected to remain pressured as the muted Euro zone price pressures print raised speculations that the European Central Bank (ECB) may unveil full-blown QE soon in a move to spur growth in a deflation-stuck economy.
EUR/GBP Levels to consider
To the upside, the next resistance is located at 0.7881 (100-DMA) and above which it could extend gains to at 0.7850 (Jan 5 High) levels. To the downside immediate support might be located at 0.7818 (10-DMA) and below that at 0.7762 (Jan 1 Low) levels.