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by ForexNewsNow Team on October 4th, 2010

Intraday analysis: EUR/GBP falls after upbeat U.K. data

EURGBP analysis - a pile of poundsNEW YORK (Forex News Now) – Sterling rebounded against the euro on Monday, on the back of upbeat data on the U.K. construction sector and following comments by the U.K. Chancellor of the Exchequer, George Osborne.

In late U.S. currency market trading, EUR/GBP hit 0.8647, down 0.81 percent on the day, after pulling back from a 4-month high of 0.8726.

Data released by the market research firm Markit showed earlier that U.K. construction activity unexpectedly increased in September.

The euro’s losses also came ahead of a spate of key interest rate decisions by central banks across the world, including those of the euro zone, Britain, Japan and Australia.

According to intraday analysis, EUR/GBP was likely to touch support around the low of Sept. 30, 0.8562, and encounter immediate resistance around the daily high, 0.8726.

Earlier Monday, Osborne announced a cap in welfare benefits for families, as British civil servants and ministers prepare to drastically cut most categories of government spending to help close Britain’s huge budget deficit

Elsewhere, the euro fell versus the yen: EUR/JPY traded at 114.19, down 0.5 percent, according to intraday analysis.

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