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Forex: EUR/GBP at 0.8480 after UK PMI and EMU CPI

FXstreet.com (Barcelona) - The EUR/GBP first dropped as low as 0.8469 on the London opening but eventually jumped back to 0.8490 on the release of UK PMI Construction that rose from 46.8 to 47.2 in March, although staying below the 47.5 consensus. As of writing, the cross is quoting around 0.8480. Also out was the preliminary release of EMU CPI in March, coming in at 1.7% from 1.8%, as expected.

Investors are awaiting tomorrow’s policy announcements by the ECB and BoE. In regard to the European central bank, TD Securities analysts believe the IFO survey was strong enough to mitigate the tracking for the Eurozone until March surveys universally disappointed. “So if the data is bad enough over the next month, this could trigger a response, or at least flagging the risks for June”, wrote analyst Richard Kelly.

“A break of the hourly resistance at 0.8499 (26/03/2013 high) is needed to improve the short-term technical configuration. A key resistance can be found at 0.8602 (20/03/2013 high)”, wrote MIG Bank analyst Bijoy Kar.

EU Mar Consumer Price Index (YoY) declines to 1.7% vs 1.8% (Feb)

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Forex: GBP/USD back above 1.5100

After a brief knee-jerk to the proximities of 1.5080 on softer-than-expected UK Construction PMI, the sterling is now trading back above the key resistance of 1.5100....
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