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Forex: EUR/GBP falls on UK prices data

FXstreet.com (Barcelona) - The big load of UK data for today made the EUR/GBP subject of a back and forth movement of 20 pips range, between 0.8566 and 0.8586. The cross is falling, below the lower band, on the publication of data. Currently it trades at 0.8560.

UK CPI rose from 2.7% to 2.8% in February, with a monthly rise of 0.7%. Core data stayed unchanged at 2.3% (YoY). PPI input rose 3.2% (+1.9% consensus) and output rose 0.8% (consensus of +0.3%). Core output PPI rose 0.3% (MoM), with consensus at +0.2%.

Retail Prices in the UK were at +0.7% (consensus of +0.8%) in February, with easing YoY data from 3.3% to 3.2%. UK DCLG fell from 3.3% to 2.2% (consensus of 2.6%) in January.

“On an absolute basis, especially weighing valuations and overall liquidity, it is no surprise that sterling received more and unwinding will be a long process. As such, this week’s budget statement could mark an important juncture in how EURGBP evolves”, wrote UBS analyst Geoffrey Yu, bullish biased and pointing to supports at 0.8531 ahead of 0.8445, while is at 0.8632 ahead of 0.8694.

UK: Annual CPI rises 2.8% in February, as expected

According to data released today by National Statistics, UK annual inflation rose 2.8% in February, following 2.7% growth registered the previous month. This result is in line with analysts' forecasts. On a monthly basis UK CPI climbed 0.7% in February, after falling 0.5% in January, as expected.
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