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12 Jun 2013
EUR/GBP offered on drop in UK claimant count
FXstreet.com (Barcelona) - EUR/GBP started the European session off drifting lower, even on the release of an overall benign set of German inflationary data. The pair has now attracted fresh offers in a drop in the UK labour markets claimant count.
EUR/GBP fresh offers
However the pair has seen fresh offers come into play after the release of a bullish set of changes in the claimant count for the UK labour market. The jobless rate in the UK was expected to stay put at 7.8% and it did so, while the more focused piece of UK labour data, the claimant change, fell from the previous numbers of -11.8k to -8.6k against a consensus of -5.0k. This is overall bullish for the pound, given expectations could now be for a higher consumer spending count in the long run benefiting economic growth. Ahead in the day, MPC member Paul Fisher is expected to also give a speech. In respect to the German data, according to data released today by Destatis, German annual inflation rose 1.5% in May, following 1.1% growth registered the previous month. This result is in line with analysts' forecasts. On a monthly basis German CPI climbed 0.4% in May, after falling 0.5% in April, as expected. Year-over-year German HICP grew 1.6% in May, up from 1.1% in April. On a monthly basis HICP increased 0.3% in May, following a 0.5% fall in April. Both results are in line with consensus.
EUR/GBP testing below the 55 ma
The EUR/GBP has been treading along the 55 ma between April and June but might be posed to head south to breach 0.8400 if it continues the bear descending channel established at the highs in May. According to Commerzbank analysts, they said we should see this continue to hold the topside for a slide back to the 0.8422 mid-May low. “Failure will leave the market weighing on the downside and target the 2012-13 support line at 0.8370”, Karen Jones, Senior analyst at Commerzbank.
EUR/GBP fresh offers
However the pair has seen fresh offers come into play after the release of a bullish set of changes in the claimant count for the UK labour market. The jobless rate in the UK was expected to stay put at 7.8% and it did so, while the more focused piece of UK labour data, the claimant change, fell from the previous numbers of -11.8k to -8.6k against a consensus of -5.0k. This is overall bullish for the pound, given expectations could now be for a higher consumer spending count in the long run benefiting economic growth. Ahead in the day, MPC member Paul Fisher is expected to also give a speech. In respect to the German data, according to data released today by Destatis, German annual inflation rose 1.5% in May, following 1.1% growth registered the previous month. This result is in line with analysts' forecasts. On a monthly basis German CPI climbed 0.4% in May, after falling 0.5% in April, as expected. Year-over-year German HICP grew 1.6% in May, up from 1.1% in April. On a monthly basis HICP increased 0.3% in May, following a 0.5% fall in April. Both results are in line with consensus.
EUR/GBP testing below the 55 ma
The EUR/GBP has been treading along the 55 ma between April and June but might be posed to head south to breach 0.8400 if it continues the bear descending channel established at the highs in May. According to Commerzbank analysts, they said we should see this continue to hold the topside for a slide back to the 0.8422 mid-May low. “Failure will leave the market weighing on the downside and target the 2012-13 support line at 0.8370”, Karen Jones, Senior analyst at Commerzbank.