EUR/GBP: Pound retreats from session lows post UK data

FXStreet (Mumbai) - The pound erased most losses against the shared currency during the European session, as solid UK trade balance data which showed that the trade deficit narrowed more than expectations in January to the smallest since June 2013, lifted sterling.

EUR/GBP moves away from highs on UK data

Currently, the EUR/GBP cross trades flat at 0.7069 levels, retreating from previously posted session highs at 0.7092. The cross in EUR/GBP shaved-off gains as the pound was boosted by the upbeat trade deficit data from the UK which revealed Britain’s trade balance deficit narrowed to GBP0.6 billion compared with expectations of it shrinking to GBP2.3 billion reflecting a large fall in imports, half of which came from oil imports.

Earlier in the session, impressive German CPI data boosted the euro, pushing the pair higher closer to 0.71 handle. Germany’s final CPI print which confirmed that inflation in the euro zone’s largest economy sped up 0.1% y/y during February, following the 0.4% downturn seen in January.

EUR/GBP Levels to consider

To the upside, the next resistance is located at 0.7100 and above which it could extend gains to at 0.7150 levels. To the downside immediate support might be located at 0.7035 levels below that at 0.7011 levels.