July 06, 2023 3:31 AM

EUR/GBP returns daily gains after European Services

EUR/GBP returns daily gains after European Services

The EUR/GBP gave up its daily gains following the release of European Services Purchasing Managers Index (PMI) data. The pair originally achieved a high of 0.8575, where the 20-day Simple Moving Average (SMA) is located, but then fell to 0.8550, its lowest level in a week. Disappointing findings from the Hamburg Commercial Bank (HCOB) Services PMIs in Germany, France, and Spain contributed to the reversal, but the British index matched expectations by remaining in the growth zone.

After poor EZ Services PMIs, the euro lost momentum

During the European session, the HCOB revealed that June's French and Spanish Services PMIs were 47.2 and 53.4, respectively, below forecasts. Furthermore, the German and Italian indices remain constant from their prior levels of 54.1 and 52.2, respectively. 

The British Service PMI issued by the Chartered Institute of Purchasing & Supply (CIPIS) and S&P Global, on the other hand, came in at 53.7, as predicted.

Investors will be watching Thursday's publication of Eurozone Retail Sales for June and Friday's speeches by De Guindos and Lagarde of the European Central Bank for the rest of the week. On the British calendar, market watchers will observe the June Construction PMI and Housing data on Friday. 

EUR/GBP Levels

This, according to the daily chart, supports the bears. The Moving Average Convergence Divergence (MACD) prints diminishing green bars as the Relative Strength Index (RSI) heads south, into negative territory, making it difficult for bulls to regain their momentum.