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EUR/GBP back below 0.7100

FXStreet (Edinburgh) - EUR/GBP is now returning to sub-0.7100 levels after the better tone in the single currency pushed it to session highs near 0.7120.

EUR/GBP firm following the euro

The European cross continues to push higher as risk-on trade is set to prevail today, in a context where the greenback is eroding part of recent strong gains. Poor data from US retail sales gave riskier assets further tailwind today, adding to the selling interest around the USD.

In the UK, Governor Carney is giving a speech in Sheffield. He argued that there are no deflationary pressures in the economy although he added that low global inflation plus a stronger pound could temporary affect domestic prices.

EUR/GBP levels to watch

At the moment the cross is up 0.44% at 0.7096 and a surpass of 0.7179 (high Mar.10) would aim for 0.7214 (10-d MA) and then 0.7220 (high Mar.9). On the other hand, the next support aligns at 0.7022 (monthly high Apr.2006) ahead of 0.7000 (psychological level).

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