EUR/GBP drops below 0.80 as UK CPI beats estimates

EUR/GBP surrendered gains to print a session low of 0.7998 after the UK data showed inflation rose at a faster than expected rate in March.

Trades below hourly 200-MA

The cross turned lower from 0.8028 levels to trade below hourly 200-MA level of 0.8021 after UK CPI for March came-in at up 0.4% m/m and 0.5% y/y, both higher than estimates. However, CPI in the first quarter stood at 0.3% on the year, which is still below the Bank of England Monetary Policy Committee's forecast in the February Inflation Report of 0.44%.

Nevertheless, cross dipped to a low of 0.8005 before witnessing a slight recovery to 0.8015 only to fall back to 0.80 levels.

EUR/GBP Technical Levels

The immediate hurdle is noted at 0.8021 (hourly 200-MA), above which the pair could target 0.8044 (hourly 50-MA). Conversely, acceptance below 0.80 would open doors for a drop to 0.7946 (Mar 24 high).