Forex: Sterling pulls off from recent 5 and a half month low against Euro

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The Sterling has been gaining so far against the Euro throughout the US session; causing the EURGBP pair to descend by some 30+ pips and reach a daily low of 0.8874.

 

Earlier sessions saw the EURGBP cross pair reach a 5 and a half month high of 0.8922, as investors predict that interest rates of the Bank of England will be in delay compared to the ECB’s interest rates, which are predicted to increase sufficiently over the upcoming months.

 

The UK Claimant count change which came out at 0.7K from an expected -3.1K for March also shows an increase in the number of unemployed persons in the UK. The increase in this figure from its expectation saw the EURGBP steeply gain at the moment of its release at 09:30GMT, as the negative data saw investors take long positions against the GBP.

 

The EURGBP came very close to its October 2010 high of 0.8941 – a level considered to be the next major resistance level for the pair. Should the pair exceed past this level it will indicate a 12 month high for the Euro against the Sterling, with the next resistance level seen at the March 29th (2010) high of 0.9029.