20.09.201008:13:00UTC+00Sterling falls to seven week low vs euro after UK data

News

• Sterling came under pressure on Monday, falling to a seven-week low against the euro after a raft of weak economic numbers confirmed a patchy UK recovery.
• By 1025 GMT, sterling was at $1.5602, down 0.15 pct on the day, moving away from a session high of $1.5686.
• The euro extended its gains against the pound, rising as high as 84.12 pence. Stops were triggered on the euro/sterling pair on the break of key technical resistance at 84.05 pence.
• Traders said near term support is seen around $1.5560, which is the 38.2 pct retracement of the pound's move from its Aug 9 high of $1.5998 to a low of $1.5296 on Sept 7.
• They added that more stops are lined up at 84.16 levels.
• More support is seen at the 50-day moving average at $1.5531 and its 200-day moving average currently at $1.5372.
• BOE data showed lending to U.K. businesses fell for the fifth month in July but at its slowest pace in almost a year.
• Traders said the pound was also pressured on the crosses, especially against the Swiss franc and Aussie, down around 1 pct on the day for both pairs.