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Forex - EUR/GBP trims losses despite weak euro zone data

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Forexpros - The euro trimmed losses against the pound on Wednesday, shrugging off worse-than-expected data on German business climate and industrial orders as the European Central Bank's bond buying program supported the single currency.

EUR/GBP pulled back from 0.8728, the daily low, to hit 0.8751 during European morning trade, down just 0.02% over the day.

The pair was likely to find support at 0.8700, Tuesday's low and short-term resistance at 0.8808, the high of August 18.

Earlier in the day, official data showed that euro zone industrial orders fell unexpectedly in June.

Eurostat said that new industrial orders fell 0.7% in June, after a 3.6% rise in May, the sharpest monthly fall since September 2010. Analysts had expected industrial orders to rise by 0.4%.

A separate report showed that the Ifo Institute's index of German business climate fell to a 14-month low this month, falling to 108.7 from 112.9 in July. Analysts had forecast a decline to 111.

The single currency remained supported as the European Central Bank continued to buy Spanish and Italian government debt, keeping borrowing costs at affordable levels.

Meanwhile, the euro was higher against the U.S. dollar, with EUR/GBP easing up 0.11% to hit 1.4465.

The dollar remained on the back foot amid ongoing speculation that Federal Reserve Chairman Ben Bernanke could indicate that further monetary easing may be necessary when he speaks at an economic symposium in Jackson Hole, Wyoming, later in the week.

Later in the day, the U.S. was to publish government data on durable goods orders.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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