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EUR/GBP holds near key moving averages as German data fails to lift euro
The euro stayed pinned around 0.8560 despite better-than-expected German GDP and a jump in the IFO business climate index to 88.8 in August.
EUR/GBP traded little changed around 0.8560 on Tuesday, as a run of stronger German economic data did not translate into a sustained lift for the euro against a resilient pound, according to FXStreet.
The pair remained near its 20 and 100-period Simple Moving Averages, with neither side able to force a clean break, leaving it rangebound despite a busy data calendar.
German second-quarter GDP rose 0.3% quarter on quarter, beating the 0.2% forecast, while the annual rate increased to 1%. The IFO business sentiment survey also surprised, with the headline Business Climate index rising to 88.8 in August from 86.7, above the 87.2 expected.
FXStreet noted the data trimmed the case for additional marginal European Central Bank easing, but not enough to overcome support for sterling, which was helped by a softer US dollar and had held near a six-month high versus USD. Technically, EUR/GBP hovered around 0.8557 on the 4-hour chart, with overhead supply around the 0.8559 to 0.8560 area and nearby resistance reinforced around 0.8562.