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6 Feb 2013
Forex: EUR/GBP retracing losses after UK housing
As the market approached the release of UK housing prices, the EUR/GBP weakened from 0.8670 area to as low as 0.8638 by the time of the publication. UK Halifax House Prices dropped -0.2% in January, as expected. 3M/YoY data rose from -0.3% to 1.3%, not as high as the 1.5% expected.
From 0.8638, the cross is bouncing and retracing its losses, now back to 0.8660, still -0.18% lower on the day. Earlier, the UK BRC Shop Price Index rose 0.6% in January (MoM), at a lower pace than December's 1.5% rise.
“The Elliott wave count on the daily is suggesting a pullback to the 0.8425/00 region (50% retracement of the move seen this year), wrote Commerzbank analyst Karen Jones, wary of a correction lower The daily RSI has diverged and we are wary of a correction lower, but unable to rule out a move to 0.8800/30 (78.6% retracement of the move down from 2011 and the October 2011 high) prior to this being seen.
From 0.8638, the cross is bouncing and retracing its losses, now back to 0.8660, still -0.18% lower on the day. Earlier, the UK BRC Shop Price Index rose 0.6% in January (MoM), at a lower pace than December's 1.5% rise.
“The Elliott wave count on the daily is suggesting a pullback to the 0.8425/00 region (50% retracement of the move seen this year), wrote Commerzbank analyst Karen Jones, wary of a correction lower The daily RSI has diverged and we are wary of a correction lower, but unable to rule out a move to 0.8800/30 (78.6% retracement of the move down from 2011 and the October 2011 high) prior to this being seen.