14.07 - EUR/GBP gained some traction
- by George Solotarov
The EUR/GBP cross edged higher following the release of mixed UK macro data and was last seen trading near one-week tops, around mid-0.9000s. Following an early dip to the 0.9020 region, the cross attracted some buying and was now looking to build on the previous day's strong positive move of around 100 pips. The British pound remained depressed following the release of UK macro data and was seen as one of the key factors lending some support to the EUR/GBP cross amid a subdued action surrounding the shared currency.
According to the UK monthly GDP report, the economy registered a modest growth of 1.8% in May as compared to 5% expected and the previous month's coronavirus-induced sharp contraction of 20.3%. The softer reading, to a larger extent, negated upbeat manufacturing production data, which arrived at +8.4% MoM in May as against a fall of 20.9% expected and -24.4% booked in April. In the meantime, Tuesday's release of the German/Eurozone ZEW economic survey results might influence the common currency and produce some short-term trading opportunities.