Global macro overview for 11/07/2017:
Eurozone Sentix Investors Confidence Index remains close to 10-year high after the latest data. The index dropped 0.1 points to 28.3 in June, following a reading of 28.4 in the previous month and beating forecasts for a decline to 28.1.Moreover, investors' assessment of the current situation increased for the seventh consecutive time, reaching 37.3 points, the highest level in nearly 10 years. This data is another proof that the Eurozone economic momentum strongly improved and it is on a good way to beat the second quarter's GDP estimates. According to the recent business surveys, the Eurozone second-quarter expansion was the fastest in six years, For example, the IHS Markit Eurozone Composite Purchasing Managers' Index (PMI) climbed to 56.3 in June, which was slightly below April and May's six-year record highs of 56.8 points (any figure above 50 signals expansion in the economy, whereas a reading below that level points to contraction). Moreover, Markit's June retail business survey showed that Eurozone retail sales increased to nearly two-year highs in June, led by sharp gains in Germany and France, the region's top two economies.
According to the latest European Central Bank (ECB) Monetary Policy Meeting Minutes, ECB President Mario Draghi has expressed confidence in the recovery and has assured markets that ultra-loose policy would remain in effect for the foreseeable future. His statement was backed up by ECB's chief economist Peter Praet later last week.
Let's now take a look at the EUR/GBP technical picture on the H4 time frame. The bulls tried three times to break out above the technical resistance at the level of 0.8880, but so far no avail. Currently, the price is decreasing towards the next technical support at the level of 0.8814 mainly due to the overbought market conditions.
