Forex: EUR/GBP pressured ahead of UK PMI Construction

The EUR/GBP is being pressured to the downside as the British currency gets stronger ahead of the UK PMI Construction. The cross has reached as low as 0.8643 on the London opening. The UK data is expected to improve slightly from 48.7 to 49.0 in February. "What will be much more important though is tomorrow’s services PMI, which we think could be the make-or-break factor for whether the BoE extends QE on Thursday", wrote TD Securities analyst Alvin Pontoh.

Earlier, the Spanish unemployment change came in smaller than the 77.5K expected and less than half of the January figure, as it "only" added 59.4K unemployed. EMU Sentix Investor Confidence and PPI are due to be released at 09:30 GMT and 10:00 GMT.

"The bearish engulfing pattern and break of the uptrend suggests further weakness will be seen near term to 0.8566 then 0.8449/47, the 50% retracement of the move seen this year and the 8th February low", wrote Commerzbank analyst Karen Jones, pointing to intraday resistance at 0.8715.