EUR/GBP above 0.8750 ahead of Eurozone and UK PMI on Tuesday
- Eurozone and UK Manufacturing PMI are slated on Tuesday.
- The inflation data for the Eurozone is coming up on Thursday.
The EUR/GBP is trading at around 0.8758 down 0.23% as the forex trading session is coming to an end on Easter Monday. On Tuesday all stock markets around the globe will function on regular trading hours.
The main theme dominating the markets on Easter Monday is the risk-off sentiment stemming from falling equities and the flight to safe-haven yen and gold. In reaction to US tariffs on steel and aluminum, China retaliated with 3 billion worth of trade tariffs on 128 kinds of US imports.
On the macroeconomic front, coming up next for the euro on Tuesday at 6:00 GMT is the German Retail Sales expected to accelerate to 0.8% month-on-month in February from -0.7% seen the previous month. At 7:55 GMT, the German Markit Manufacturing Purchasing Manufacturing Index (PMI) in March is expected unchanged from the previous month at 58.4 while the Eurozone Markit Manufacturing PMI comes in 5 minutes later at 8:00 GMT and is equally expected unchanged at 56.6.
Meanwhile in the UK on Tuesday at 8:30 GMT, the Markit Manufacturing PMI in March is forecast to accelerate to 54.5 from previous readings at 55.2 seen in February. Towards the end of the day at 23.01, the British Retail Consortium (BRC) will release its year-on-year data to March, previous numbers in February were seen at -0.8%.
The important news on inflation in the Eurozone will be released on Wednesday with the Consumer Price Index (CPI) in March. Also well-worth mentioning is the Governing Council’s releasing its report on the ECB Monetary Policy Meeting Accounts on Thursday.
EUR/GBP 4-hour chart
EUR/GBP has found some support at 0.8750 with the 50-period simple moving average on the 4-hour chart. Support is seen initially at 0.8730 swing low and Fibonacci retracement of the March 22-27 bull leg; followed by 0.8709-0.8720 swing low and 61.8% Fibonacci retracement. Resistance remains the 0.88 swing high and figure. A breach to the upside would see the pair target 0.89 figure previous supply level.