Euro Cracks Under Pressure from Mixed Eurozone Figures

The Euro (EUR) has been trading lower against the British Pound (GBP) since mixed Eurozone macroeconomic figures were released on Monday.

Data from Destatis revealed that the Eurozone economy grew at a faster rate than initially thought in the second quarter, with Gross Domestic Product (GDP) revised up to 0.6% from the previously estimated 0.4%. Year-over-year, Eurozone GDP was revised to 1.2% growth from previous estimates of a 1% increase.

However, downbeat German Industrial Production figures cast doubt on the Eurozone's growth outlook and put negative pressure on the Euro. German factory output dropped 1.1% in July, against market expectations of a 0.3% increase, while June's reading was revised down to 0% from the 0.2% rise previously estimated.

The EUR/GBP pair is currently testing support at a previous resistance area, at 0.8585 ahead of the US session opening. If it breaks below this level, it would expose the 0.8565 area where the trendline from mid-August lows crosses the September 2 trough.