Forex Pros – The euro extended modest losses against the pound on Monday, following data showing that euro zone consumer prices rose less quickly in January than initially thought.
EUR/GBP hit 0.8522 during European morning trade, the pair’s lowest since Thursday; the pair subsequently consolidated at 0.8523, dipping 0.12%.
The pair was likely to find support at 0.8468, Thursday’s low and resistance at 0.8592, Thursday’s high and a four week high.
Eurostat said the annualized rate of consumer price inflation was 2.3% in January, lower than the 2.4% provisional estimate. January’s rate was up from December’s 2.2% increase and was the highest since October 2008.
Consumer prices fell 0.7% in January from December, more than the forecast 0.6% decline. Underpinning that was a 1.6% monthly drop in core prices, which exclude volatile items such as energy, food, alcohol and tobacco.
The overall inflation rate was boosted by energy prices, which continued to increase in annual terms.
Meanwhile, the euro was higher against the U.S. dollar, with EUR/USD climbing 0.58% to hit 1.3835.
Data on Friday showed that the U.K. economy contracted by 0.6% in the fourth quarter, more than the 0.5% provisional estimate.
ForexPros.com
