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Forex: EUR/GBP close to flat after UK GDP

Today's upside found its high early in London morning, at 0.8673, and a retracement of gains was already in process just before the release of EMU money supply data. EMU M3 money supply eased from 3.7% to 3.5% (3m) in January, but rose from 3.3% to 3.5% (consensus of 3.2%) in the annualized basis. Private loans contracted -0.9%, more than the -0.6% expected.

The EUR/GBP went back to the opening price to wait for UK GDP. Annualized growth came in at +0.3%, instead of the 0.0% expected, and the quarterly figure came in at -0.3% as forecasted. Total Business Investment contracted -1.2% (QoQ), easing from 5.4% to 0.4% (YoY).

“The bearish engulfing pattern and break of the uptrend suggests further weakness will be seen to 0.8566 then 0.8449/47, the 50% retracement of the move seen this year and the 8th February low”, wrote Commerzbank analyst Karen Jones, pointing to interim resistance at 0.8715.

United Kingdom 4Q Total Business Investment (YoY) grows 0.4% and (QoQ) falls 1.2%

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