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Forex: EUR/GBP again around 0.8400 support on NY time

FXstreet.com (Barcelona) - The EUR/GBP was also affected by the widely expected employment report in the US, and a total of 70 more jobs than expected (with April data and March revision) made the market wobble. The 0.8450 line remains a resistance hard to beat today and after touching 0.8449 high, the cross was poured down to the base of 0.8400, to 0.8408 low, around where the cross found support yesterday.

The US nonfarm payrolls surprised investors as the March weakness was revised higher by 50K, from 88K to 138K. Also, April data came in above market consensus, at 165K instead of 145K.

UK Services PMI beat expectations, up from 52.4 to 52.9 in April, instead of staying unchanged as expected.

The European Commission report suggests -0.4% and -0.1% of annual GDP change in the euro area and EU, respectively, but 2014 would allow growth by 1.2% and 1.4%, respectively. Olli Rehn, Commission Vice-President for Economic and Monetary Affairs and the Euro said: "In view of the protracted recession, we must do whatever it takes to overcome the unemployment crisis in Europe. The EU’s policy mix is focused on sustainable growth and job creation. Fiscal consolidation is continuing, but its pace is slowing down. In parallel, structural reforms must be intensified to unlock growth in Europe."

“EUR/GBP has thus far failed to break the support area between 0.8411 and 0.8398 (26/04/2013 low). However, as long as the resistance at 0.8497 (24/04/2013 low) is not broken, a short-term bearish bias is favored”, wrote MIG Bank analysts Bijoy Kar.

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