EUR/GBP pulls away from multi-week highs, trades near 0.8620

• Industrial production declines less than expected in February in the euro area.
• UK's Hammond says a substantial increase in investment is expected after Brexit.
• ECB's Praet doesn't see any need for QE.

The EUR/GBP rose to its highest level since March 22 at 0.8657 earlier today but failed to preserve its momentum and erased a large part of its daily gains. As of writing, the pair was up only 6 pips on the day at 0.8626.

Earlier today, the data from the euro area showed that industrial production in February declined by 0.2% on a monthly basis to better the market expectation of -0.6%. Furthermore, European Central Bank (ECB) outgoing Chief Economist Peter Praet said that the weakness in personal consumption was not very worrisome and stated that he didn't see the need for QE. Although the shared currency continued to gather strength, the pair reversed its course as the improved market sentiment helped the GBP find demand.

Additionally, British finance minister Philip Hammond sounded relatively optimistic on the economic outlook and provided additional support to the currency. Praet argued that a no-deal Brexit was no longer an immediate threat and added that he was expecting a substantial increase in business investment once Brexit is resolved.

Technical levels