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EUR/GBP drops to test weekly lows

FXStreet (Córdoba) - EUR/GBP lost in a few hours two days of gains and fell to test Monday’s lows located around 0.7900. Economic data from the United Kingdom gave a little push to the pound that then soared with the decline of the euro and boosted by GBP/USD that broke a key short term resistance and rose to 2-week highs.

EUR/GBP weakens considerably

The pair recovered ground on Monday and also on Tuesday, after dropping in the previous days from 5-week highs at 0.8035 to 0.7899 (Nov 24 low). But in just three hours, the pair erased weekly gains and dropped to test the support around 0.7900. Currently trades at 0.79050, down 0.45% for the day.

UK growth as expected

The new estimate of UK Q3 GDP showed no significant changes from the previous report. The economy grew 0.7% during the third quarter. The FX Strategy Team at RBS saw the recent data as respectable but they still expect a slowdown in 2015. “We remain of the view that the UK is likely to experience a significant slowdown in growth next year: from 3.0% in 2014 to around 2.3% in 2015 as the headwinds of fiscal and monetary policy tightening and weaker external demand return growth to a trend-like pace of expansion”.

OPEC output cut to trigger a fresh rally in USD against Asian Currencies– FXStreet

FXStreet Editor and Analyst, Omkar Godbole, notes that a cut in the OPEC output may trigger a fresh rally in Dollar against Asian Currencies irrespective of the cut being symbolic or aggressive.
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USD/JPY stuck in a range, US data eyed

USD/JPY is going through a consolidation phase, trading in a tight range below 118.00, ahead of a busy data day in the US.
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