Investing.com - The euro was trading within striking distance of a three-and-a-half year low against the pound on Tuesday, as concerns over political uncertainty in Greece and to a lesser degree France, weighed.
EUR/GBP hit 0.8050 during European morning trade, the session low; the pair subsequently consolidated at 0.8066, inching up 0.09%.
The pair was likely to find support at 0.8034, Monday’s low and a three-and-a-half year low and resistance at 0.8079, Monday’s high.
Markets were watching developments in Greece as political leaders continued to hold cross party talks after the country’ largest party, New Democracy, was unable to reach an agreement to form a government on Monday.
The uncertainty fuelled fears that Greece will not have a government in place in time to secure its next tranche of international aid next month, as new elections look increasingly likely.
Investors were also jittery amid concerns over new French president-elect, Socialist Francois Hollande who has said he wants to renegotiate the euro zone’s fiscal pact in order to stimulate growth in the region.
In the U.K., a report earlier showed that house prices fell at the fastest pace in six months in April.
The Royal Institution of Chartered Surveyors' house price balance fell to minus 19 from a downwardly revised minus 11 in March, against expectations for a reading of minus 10.
The euro was hovering close to a three-month low against the U.S. dollar, with EUR/USD shedding 0.30% to hit 1.3011 and was near a two-and-a-half month trough against the yen, with EUR/JPY shedding 0.38% to hit 103.87.
Later in the day, Germany was to release official data on industrial production, while European Central Bank President Mario Draghi was due to speak in Frankfurt.
EUR/GBP hit 0.8050 during European morning trade, the session low; the pair subsequently consolidated at 0.8066, inching up 0.09%.
The pair was likely to find support at 0.8034, Monday’s low and a three-and-a-half year low and resistance at 0.8079, Monday’s high.
Markets were watching developments in Greece as political leaders continued to hold cross party talks after the country’ largest party, New Democracy, was unable to reach an agreement to form a government on Monday.
The uncertainty fuelled fears that Greece will not have a government in place in time to secure its next tranche of international aid next month, as new elections look increasingly likely.
Investors were also jittery amid concerns over new French president-elect, Socialist Francois Hollande who has said he wants to renegotiate the euro zone’s fiscal pact in order to stimulate growth in the region.
In the U.K., a report earlier showed that house prices fell at the fastest pace in six months in April.
The Royal Institution of Chartered Surveyors' house price balance fell to minus 19 from a downwardly revised minus 11 in March, against expectations for a reading of minus 10.
The euro was hovering close to a three-month low against the U.S. dollar, with EUR/USD shedding 0.30% to hit 1.3011 and was near a two-and-a-half month trough against the yen, with EUR/JPY shedding 0.38% to hit 103.87.
Later in the day, Germany was to release official data on industrial production, while European Central Bank President Mario Draghi was due to speak in Frankfurt.