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EUR/GBP - Back at the September Trendline after Data Points

The EUR/GBP started the week strong, breaking above last week's consolidation roughly between 0.7980 and 0.7945. The bullish attempt did not last long as traders faded EUR/GBP at 0.8010. It fell sharply to last week's low, and is now breaking that low after UK and Eurozone data. 


(EUR/GBP 4H chart 9/17)

If price clears 0.7930, there should be downside risk to the 0.7891 support pivot, as well as 0.7874, the July and 2014-low.

UK Data: Today, we got a few data points for the labor market but they are a bit untimely, for July and August. 
1) The average earnings index 3m/y for July came in at 0.6%. This beat forecasts around 0.5% and is a major improvement from June's -0.1% reading. Wage growth  might pick up after all, and the BoE will have one fewer thing to worry about before implementing a rate hike.
2) Claimant Count for August fell 37.2K, more than the forecast around 29.7K. The July reading was also revised, to -37.4K from -33.6K, showing more people leaving unemployment benefits than expected in the last 2 months. 
3) The unemployment rate in July was 6.2%, better than the forecast of 6.3%, and lower than the June reading of 6.4%. 
4) The BoE released its meeting minutes. The Monetary Policy Committee (MPC) voted unanimously for the bond purchase program to stay course at 375B pound. For the interest rate vote, 7 voted to maintain rates, and 2 voted to increase the benchmark rate from 0.50% to 0.75%. (Martin Weale, and Ian McCafferty).


Eurozone Data: August CPI y/y was revised to a final version of 0.4%. This is not as bad as the 0.3% originally estimated, but far from the 2.0% ECB target.