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EUR/GBP – sideways 0.8453 ahead of busy week

FXstreet.com (London) - EUR/GBP had been a non-event throughout the European sessions last week, bar Mondays and Wednesdays moves of 100 pips.

Cable and EUR/USD had seen some aggressive drops in thinner market conditions on Friday and as a result EUR/GBP had been pretty side-lined to say the least. Looking ahead for this week there are plenty of data releases in a heavy European calendar to invite the market back into play with this pair.

In the UK, CPI arrives tomorrow, with BoE minutes the following morning, and GDP/ Retails Sales on Thursday. The market has seen some positive signs from previous data, and in the latest inflation report from King gave some signs of an improvement in the UK economy much of which is likely to be already priced into the pound. However, the minutes may offer further positive comments, reassuring the EUR/GBP resistance levels and the near term descending channel. On the other hand, the pair may be relieved to the upside should comments divulge any weaknesses in the UK economy going forward.

In Euroland, German PPI arrives early on Tuesday, PMI on Thursday and GDP and IFO for Friday. Also to watch out for are the FED minutes affecting the pair in the EUR and cable where the market has been pricing in comments with regards to ending the QE cycle. Supports are 0.8420 and 0.8395. Resistances are 0.8460 and 0.8495

EUR/USD climbs to highs around 1.2870

Sudden buying interest is now lifting the shared currency to session highs in the vicinity of 1.2870 on Monday, ahead of second-tier data from Italian industrial sector due later....
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