FXstreet.com (Barcelona) - The EUR/GBP rose to 0.8430 area on the London session as risk sentiment spreads due to positive news regarding Italian politics but also for the economic calendar of the morning. The European Commission has just released the confidence report in the Eurozone in April.

Consumer confidence improved from -23.5 to -22.3, as expected, but economic sentiment indicator (from 90.0 to 88.6), business climate (from -0.75 to -0.93), industrial confidence (from -12.3 to -13.8) and services sentiment (from -7 to -11.1) all fell and disappointed market consensus of 89.3, -0.89, -13.5, and -7.0, respectively.

Portuguese consumer confidence rose from -55.3 to -54.2, and business confidence rose from -3.9 to -3.6. Italian business confidence eased from 88.6 to 87.6, below 88.9 consensus. Italian wage inflation remained unchanged at 0.0% (MoM) and 1.4% (YoY). The Greek PPI dropped from 0.8% to -1.5% in March.

“This is the first time that the market has traded below its cloud since August 2012. The 0.8417 March low has been taken out and we look for further losses to 0.8363 and then the 0.8285 2012-2013 uptrend”, wrote Commerzbank analyst Karen Jones, pointing to initial resistance at 0.8480 ahead of the 0.8570 55 day ma