EUR/GBP jumps to 0.7370 on upbeat EZ data

By FXStreet FXStreet (Mumbai) – The cross in the EUR/GBP is posting sharp gains in the European morning, now pushing higher towards 0.74 barrier, as the latest release of upbeat EZ PMIs and German employment data further added to the upside in the shared currency.

EUR/GBP spikes from 0.7320

Currently, the EUR/GBP pair trades 0.73% higher at 0.7358, swiftly retreating from 0.7369 highs reached post data release. The EUR/GBP cross extends to the upside as the euro received further boost following the release of solid EZ PMI readings with the German manufacturing gauge hitting 16-month highs.

The German manufacturing PMI booked 53.3 points during August, following the 51.8 snatched in July, Markit Economics reported. While the final manufacturing PMI for the euro zone came in at 52.3 points in August, a notch below July’s reading. Markets had bet on a reading of 52.4 points.

However, further upmoves in the cross remains restricted as the GBP remains well bid versus the US dollar awaiting fresh cues from the upcoming UK manufacturing PMI report.

EUR/GBP Technical Levels

To the upside, the next resistance is located at 0.7400 levels and above which it could extend gains 0.7423 (Aug 24 High) levels. To the downside immediate support might be located …read more

Source:: FX Street