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Forex: EUR/GBP rallies on BoE's King vote for QE

The British Pound is getting run over by the euro after the BoE meeting minutes revealing that Governor King, Fisher and Miles were in favor of an increase of £ 25B in QE. The EUR/GBP has rallied from 0.8690 to as high as 0.8757, and it's not safe to say the rally has stopped.

UK labor data shows a higher ILO unemployment rate from 7.7% to 7.8%. However, there were 12.5K less claimants in January, instead of -5K as expected, pushing the rate lower from 4.8% to 4.7%.

German January CPI and HICP dropped to +1.7% and +1.9% (YoY) in line with consensus. January PPI rose from 1.5% to 1.7% (YoY), instead of easing to 1.2%, as data rose +0.8% on the month (consensus of +0.3%).

French business climate surprised by rising from 87 (revised from 86) to 90 in February and CPI data (EU normalized) fell -0.6% (MoM) to an annualized drop from 1.5% to 1.4%, both figures below consensus.

“EUR/GBP has maintained upside pressure and looks set for a retest of the 0.8714 recent high”, wrote Commerzbank analyst Karen Jones, pointing to next resistance at 0.8800/30, which is regarded as the last defence for the 0.9082 2011 high.

Forex: GBP/USD plunges on BoE meeting minutes

The GBP/USD is falling massively at the time of writing as the BoE meeting minutes surprise investors with the 6-3 vote to keep QE unchanged at £375B. Governor King, Fisher and Miles were in favor of an increase of £ 25B. The GBP/USD has fallen by 100 pips already, from 1.5440 to 1.5340.
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