Yesterday’s trade saw EUR/GBP within the range of 0.7944-0.8030. The pair closed at 0.7962, losing 0.62% on a daily basis.
At 6:47 GMT today EUR/GBP was up 0.06% for the day to trade at 0.7967. The pair touched a daily high at 0.7972 at 2:10 GMT.
Fundamentals
Euro zone
Spanish balance of trade
The deficit on Spains trade balance probably widened to 2.4 billion EUR in August, according to the median forecast by experts. In July the trade gap increased 132% to reach 1.83 billion EUR from 0.79 billion EUR in July 2013. Total exports surged at an annualized rate of 8.7% to the highest value on record, or 21.58 billion EUR, in July. However, total imports rose at a pace of 13.4% to reach 23.41 billion EUR. Shipments to Germany increased 8.5% in July, which has been the most considerable pace since October 2012. Sales to France were 0.9% lower, while those to the United Kingdom dropped 18.2%, marking the seventh consecutive month of decline.
Spain has regular deficits on its trade balance, because of its high imports of fuel and high added value goods.
In case nations trade deficit widened more than anticipated, this might have a bearish effect on the single currency. The Bank of Spain is to release the official trade data at 8:00 GMT.
Euro Area construction output
At 9:00 GMT Eurostat is to report on construction activity in the Euro zone for August. Seasonally adjusted construction output in the region remained flat in July compared to a month ago, following a 0.4% drop in June compared to May. In annual terms, output expanded 0.4% in July. This indicator reflects how resilient construction sector development is and also provides clues over investment activity. Higher rates of increase in output usually provide a limited support to the common currency.
Pivot Points
According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 0.7979. In case EUR/GBP manages to breach the first resistance level at 0.8013, it will probably continue up to test 0.8065. In case the second key resistance is broken, the pair will probably attempt to advance to 0.8099.
If EUR/GBP manages to breach the first key support at 0.7927, it will probably continue to slide and test 0.7893. With this second key support broken, the movement to the downside will probably continue to 0.7841.
The mid-Pivot levels for today are as follows: M1 – 0.7867, M2 – 0.7910, M3 – 0.7953, M4 – 0.7996, M5 – 0.8039, M6 – 0.8082.
In weekly terms, the central pivot point is at 0.7862. The three key resistance levels are as follows: R1 – 0.7898, R2 – 0.7942, R3 – 0.7978. The three key support levels are: S1 – 0.7818, S2 – 0.7782, S3 – 0.7738.