Global macro overview for 07/09/2016:
The eurozone GDP data released yesterday came in line with expectations. According to Eurostat, final GDP for the second quarter was at the level of 0.3% (0.3% prior) and 1.6% on year-to-year basis (1.6% prior). The main reason behind the slowdown in the second quarter was weakness in domestic demand in countries like France, Italy, and Finland, flat gross investment (0.4% only), and weak consumer spending (0.2%). In conclusion, the economic growth in the eurozone is barely above the inflation, so now all eyes on third-quarter GDP reports from Germany and France.
Let us now take a look at the EUR/GBP technical picture on the daily time frame. Bulls have managed to make another higher high with the top at the level of 0.8723, but currently the market is in the corrective decline. Nevertheless, the long-term trend is still bullish with the key support at the level of 0.8115. The next resistance is seen at the level of 0.8469.
