Investing.com – The euro was up against the pound on Tuesday, surging to a 4-day high, following the release of worse-than-expected U.K. data on industrial order expectations.
EUR/GBP hit 0.8825 during European morning trade, the pair’s highest since October 13; the pair subsequently consolidated at 0.8810, gaining 0.35%.
The pair was likely to find support at 0.8703, Monday’s low and short-term resistance at 0.8837, the high of October 13 and a 6-month high.
Earlier in the day, the Confederation of British Industry said its index of industrial order expectations fell more-than-expected in October, tumbling to -28 after falling to -17 in September. Analysts had expected the index to decline to -19 in October.
A reading above zero on the index indicates increasing order volume is expected, below indicates expectations are for lower volume.
Commenting on the report, CBI chief economic advisor Ian McCafferty said "The recovery in the manufacturing sector is well grounded and is expected to continue, this despite the soft patch last quarter".
He added, "Over the next three months firms predict a strong rise in output driven by predictions of further export orders growth, while support from stock-building fades".
Meanwhile, the euro was down against the U.S. dollar, with EUR/USD shedding 0.23% to hit 1.3903.
Also Tuesday, the ZEW Centre for Economic Research said that its index of German economic sentiment fell more-than-expected in October, while its index of euro zone economic sentiment fell less-than-expected.
EUR/GBP hit 0.8825 during European morning trade, the pair’s highest since October 13; the pair subsequently consolidated at 0.8810, gaining 0.35%.
The pair was likely to find support at 0.8703, Monday’s low and short-term resistance at 0.8837, the high of October 13 and a 6-month high.
Earlier in the day, the Confederation of British Industry said its index of industrial order expectations fell more-than-expected in October, tumbling to -28 after falling to -17 in September. Analysts had expected the index to decline to -19 in October.
A reading above zero on the index indicates increasing order volume is expected, below indicates expectations are for lower volume.
Commenting on the report, CBI chief economic advisor Ian McCafferty said "The recovery in the manufacturing sector is well grounded and is expected to continue, this despite the soft patch last quarter".
He added, "Over the next three months firms predict a strong rise in output driven by predictions of further export orders growth, while support from stock-building fades".
Meanwhile, the euro was down against the U.S. dollar, with EUR/USD shedding 0.23% to hit 1.3903.
Also Tuesday, the ZEW Centre for Economic Research said that its index of German economic sentiment fell more-than-expected in October, while its index of euro zone economic sentiment fell less-than-expected.