FxWirePro: EUR/GBP on verge of cloud breakout, better-than-expected eurozone data supports

EUR/GBP chart - Trading View 

EUR/GBP was trading 0.36% higher on the day at 0.8627 at around 12:20 GMT.

The single currency was buoyed after better-than-expected eurozone manufacturing PMI and inflation data.

Euro zone manufacturing activity expanded at a record pace in May, according to a survey on Tuesday.

IHS Markit’s final Manufacturing Purchasing Managers’ Index (PMI) rose to 63.1 in May from April’s 62.9, above an initial 62.8 “flash” estimate and a record high reading.

The output prices index eased from April’s 63.2 to 62.2, while the input prices index soared to 87.1 from April’s 82.2, easily the highest reading on record.

According to data released by the Eurostat, Eurozone preliminary CPI came in at 2% y/y in May, outpacing expectations of 1.9% while accelerating from April’s 1.6%.

The core figures steadied at 0.9% Y/Y in May when compared to 0.9% expectations and 0.7% booked in April.

EUR/GBP is testing cloud resistance, decisive break above will provide an upside boost. Next immediate resistance lies at 55-EMA at 0.8639 ahead of 23.6% Fib at 0.8650.