FXStreet (Edinburgh) – A softer tone in the euro has been weighing on EUR/GBP on Monday, although the decline appears to have found decent support around 0.7160 so far.

EUR/GBP focus on EMU, UK data

The pair is posting modest losses at the beginning of the week, retracing part of last week’s upside following a resurgence of the buying interest around the euro backed by rising optimism around Greece.

Ahead in the day, the final manufacturing PMI prints for the month of May in the euro area and the UK economy will drive the price action, while data releases in the US economy in the European afternoon are expected to be the main catalyst for the sentiment later on.

EUR/GBP levels to watch

At the moment the cross is losing 0.38% at 0.7163 and a breach of 0.7155 (low Jun.1) would expose 0.7100 (low May 28) and finally 0.7057 (low May 27). On the other hand, the initial hurdle lines up at 0.7190 (high Jun.1) followed by 0.7200 (high May 29) and then 0.7216 (daily cloud base).

A softer tone in the euro has been weighing on the European cross on Monday, although the decline appears to have found decent support around 0.7160 so far…

(Market News Provided by FXstreet)

By FXOpen