Feb. 25: European session
European stock markets fell from a 6-year closing high on Tuesday.
EUR/USD tested $1.3763 before sliding to $1.3740. The final reading of German Q4 GDP, as expected, showed a 0.4% gain. Italian retail sales fell by 0.3%, while analysts expected growth of 0.4%. In France, a report Tuesday from statistics bureau Insee showed business confidence remained steady in February, at the same level recorded in the two previous months. Business confidence for Germany brightened for a fourth straight month in February, data showed on Monday.
GBP/USD retraced to $1.6690 after having hit $1.6706 earlier in the European trade. GBP spiked soon after the BoE member McCafferty suggested the likeliness of an earlier rate hike in the UK economy if inflation pressure picks up pace again. Key support for the cable lies at $1.6580. EUR/GBP is trading under pressure around $0.8235.