Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

Yesterday’s trade saw EUR/GBP within the range of 0.7922-0.7977. The pair closed at 0.7928, losing 0.42% on a daily basis.

At 7:22 GMT today EUR/GBP was up 0.01% for the day to trade at 0.7925. The pair touched a daily high at 0.7929.

Fundamentals

Euro zone

Spanish unemployment change

The number of the unemployed people in Spain probably increased by 21 300 in November, according to the median forecast by experts, following a gain by 79 200 during October. The latter has been the most significant monthly increase since January, when unemployed persons in the country were 113 100 more. An increase implies that consumer spending may be less active, while the latter is tightly related to economic growth. A decrease suggests the opposite. A larger-than-projected increase in unemployed people might have a bearish effect on the euro. The official data is due out at 8:00 GMT.

Euro zone producer prices

The annualized index of producer prices (PPI) probably fell 1.3% in October, according to market expectations, after a 1.4% decline in September. If so, this would be the highest level since July, when annualized producer inflation was recorded at -1.3%. The Producer Price Index measures changes in prices of goods and services either as they leave the production process, or as they enter it. Unlike the CPI, which measures price changes from the consumers perspective, the PPI basically gauges the prices received by domestic producers for their output, or the prices paid by domestic producers for their intermediate inputs. The PPI performance may be an early signal for inflationary pressure in economy. Generally speaking, a higher-than-expected PPI reading should be considered as having a bullish effect on the common currency, as it suggests accelerated consumer inflation, while a lower-than-expected result would have a bearish effect.

United Kingdom

Construction activity

Activity in United Kingdom’s sector of construction probably slowed down in November, with the corresponding PMI coming in at 61.0, down from 61.4 in October. The index is based on a survey, encompassing managers of companies, operating in construction sector. They are asked about their estimate regarding current business conditions (new orders, output, employment, demand in the future). Values above the key level of 50.0 signify that activity in the sector has expanded. Lower-than-projected readings would mount selling pressure on the pound. The Chartered Institute of Purchasing and Supply (CIPS) is to announce the official reading at 9:30 GMT.

Pivot Points

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 0.7942. In case EUR/GBP manages to breach the first resistance level at 0.7963, it will probably continue up to test 0.7997. In case the second key resistance is broken, the pair will probably attempt to advance to 0.8018.

If EUR/GBP manages to breach the first key support at 0.7908, it will probably continue to slide and test 0.7887. With this second key support broken, the movement to the downside will probably continue to 0.7853.

The mid-Pivot levels for today are as follows: M1 – 0.7870, M2 – 0.7898, M3 – 0.7925, M4 – 0.7953, M5 – 0.7980, M6 – 0.8008.

In weekly terms, the central pivot point is at 0.7941. The three key resistance levels are as follows: R1 – 0.7984, R2 – 0.8015, R3 – 0.8058. The three key support levels are: S1 – 0.7910, S2 – 0.7867, S3 – 0.7836.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Oil reserves rise against expectationsOil reserves rise against expectations The Energy Information Administration said in its weekly report that Crude Oil Inventories rose by 0.313 million barrels as of the week ending June 14. This is above the average range for this time of the year. Gasoline inventories rose by 183 […]
  • EUR/USD trades in proximity to three-week highs on German business climate dataEUR/USD trades in proximity to three-week highs on German business climate data The euro traded in proximity to three-week highs against the US dollar, following data that revealed the business confidence in the largest euro zone economy, Germany, rose to a 30-month high.EUR/USD touched a session high at 1.3717 at […]
  • Google Inc. secures stability in technology patent warsGoogle Inc. secures stability in technology patent wars Google Inc. has managed to enter the top ranks of technology companies building stockpiles of legally-protected innovations, thanks to the fact that the company was awarded nearly 2,000 patents in the U.S. over 2013. This is almost double the […]
  • Forex Market: USD/CAD daily trading forecastForex Market: USD/CAD daily trading forecast Yesterday’s trade saw USD/CAD within the range of 1.0925-1.1023. The pair closed at 1.0935, losing 0.58% on a daily basis.At 8:18 GMT today USD/CAD was up 0.23% for the day to trade at 1.0962. The pair touched a daily high at 1.0970 during […]
  • Forex Market: EUR/CHF daily outlookForex Market: EUR/CHF daily outlook During Friday’s trading session EUR/CHF traded within the range of 1.2179-1.2202 and closed at 1.2195.At 6:34 GMT today EUR/CHF was gaining 0.03% for the day to trade at 1.2199. The pair touched a daily high at 1.2201 at 3:55 […]
  • Iveco Group raises full-year forecasts, pricing power to offset higher costsIveco Group raises full-year forecasts, pricing power to offset higher costs Iveco Group on Wednesday raised its forecasts regarding full-year revenue, operating profit and cash generation.The truck maker also said it expected pricing power to offset higher costs of raw materials and energy.The Italian […]