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Forex: EUR/GBP higher after EMU current account

The EUR/GBP approached the opening price of 0.8611 just before extending higher on the London session. After the release of EMU current account, the cross rose to 0.8648 high and now is consolidating gains at 0.8637 (+0.30%).

Seasonally adjusted current account in the Eurozone shows a narrower surplus from €15.9B (revised from €14.8B) to €13.9B in December, still higher than the expected €13.9B. Non-adjusted data widened from €20.8B (revised from €19.8B) to €27B, coming lower than the expected €30B.

The Bank of Spain updated its bad bank loans information, indicating an improvement from 11.4% to 10.4% in December. ECB's Draghi will speak at 14:30 GMT.

"EUR/GBP is consolidating near term and we would allow for a retest of the 0.8714 recent high. We suspect that this will hold the initial test", wrote Commerzbank analyst Karen Jones, pointing to next resistance at 0.8800/30 and 0.9082 2011 high, while support is at 0.8525 ahead of the 0.8440 region.

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