EUR/GBP sidelined on second tier data ahead of EZ CPI

FXstreet.com (London) -Italian Unemployment has seen a slight increase in the percentage of unemployed in the economy in April, 12.0% against a consensus of 11.6% and 11.9% previous in March.

The number is second tier data and has little effect on the pair. However, today it also awaits releases in UK mortgage approvals coming up at 09.30 BST. The market is looking for 54.500k in April approvals to stimulate the overall UK economy. And the big number will come in Eurozone CPI coming up at 10.00 BST. Earlier we have seen yet further poor data for the Eurozone economy with the German Apr Retail Sales (MoM) decreased to -0.4% vs -0.1% in Mar. (YoY) 1.8% vs. -2.5%. There was little reaction in the pair.

Ahead lies resistance at the top of the cloud at 0.8615 and the April highs there after, 0.8637 targeting Feb highs above 87.00. Given the number of attempts at 0.8600, a bearish candle formation is evident on the charts and a minor correction could be imminent. Support is at 0.8530 and 0.8500 to give way for 0.8405 and lower.