Forex: EUR/GBP rises after UK prices and ahead of EMU CPI

FXstreet.com (Barcelona) - The EUR/GBP eased on the European opening to 0.8524 low and retraced its early gains limited to 0.8545 area. The publication of UK prices data is allowing a move higher, currently at 0.8540.

While annualized headline UK CPI came in unchanged at 2.8% as expected in March, the monthly change was of 0.3% (instead of 0.4% consensus) and Core (YoY) data came in at 2.4% (consensus of 2.3%). In regard to UK PPI, input fell -0.1% (MoM), less than the -0.2% expected, (annualized drop from 2.1% to 0.4% - consensus of 0.8%). Output PPI stayed unchanged at 0.3% (MoM) and 2.0% (YoY), but Core output was lower at 0.1% MoM (consensus of 0.2%) and 1.3% YoY (consensus of 1.4%). UK retail prices disappointed at 0.4%, below the 0.5% expected, but YoY data rose from 3.2% to 3.3% in line with consensus.

EMU CPI and economic sentiment by ZEW are next in line on the economic calendar. UBS analysts are neutral: “The cross is unwinding the sharp sell-off of March. Resistance is at 0.8560 ahead of 0.8602”. wrote analyst Gareth Berry, pointing to support at 0.8463 ahead of 0.8410.