Investing.com - The euro slipped lower against the pound on Monday, as investors sold the currency to lock in profits after Friday’s sharp gains ahead of a German court ruling on the euro zone's permanent bailout fund and a Federal Reserve policy meeting later in the week.
EUR/GBP hit 0.7982 during European morning trade, the session low; the pair subsequently consolidated at 0.7984, shedding 0.29%.
The pair was likely to find support at 0.7924, Friday’s low and resistance at 0.8005, Friday’s high and a two-month peak.
Sentiment on the euro was hit as investors looked ahead to Wednesday’s German court ruling on the constitutionality of the European Stability Mechanism.
But demand for the single currency remained underpinned after the European Central Bank unveiled details of its bond purchasing program on Thursday, which is aimed at lowering the borrowing costs of peripheral euro zone members.
Overall market sentiment continued to be supported by speculation that the U.S. central bank will implement further stimulus measures to strengthen the economic recovery in the wake of disappointing U.S. jobs data on Friday.
The U.S. economy added 96,000 jobs in August the Department of Labor said, well below expectations for 125,000, following a downwardly revised 141,000 in July.
The euro was also lower against the U.S. dollar and the yen, with EUR/USD sliding 0.27% to 1.2781 and EUR/JPY down 0.22% to 100.05.
Earlier Monday, a report showed that investor confidence in the euro zone improved this month for the first time since March, largely due to optimism surrounding the ECB’s bond purchasing plan.
Sentix said its index of investor confidence improved to minus 23.2 in September from a reading of minus 30.3 in August, defying expectations for a reading of minus 30.7.
EUR/GBP hit 0.7982 during European morning trade, the session low; the pair subsequently consolidated at 0.7984, shedding 0.29%.
The pair was likely to find support at 0.7924, Friday’s low and resistance at 0.8005, Friday’s high and a two-month peak.
Sentiment on the euro was hit as investors looked ahead to Wednesday’s German court ruling on the constitutionality of the European Stability Mechanism.
But demand for the single currency remained underpinned after the European Central Bank unveiled details of its bond purchasing program on Thursday, which is aimed at lowering the borrowing costs of peripheral euro zone members.
Overall market sentiment continued to be supported by speculation that the U.S. central bank will implement further stimulus measures to strengthen the economic recovery in the wake of disappointing U.S. jobs data on Friday.
The U.S. economy added 96,000 jobs in August the Department of Labor said, well below expectations for 125,000, following a downwardly revised 141,000 in July.
The euro was also lower against the U.S. dollar and the yen, with EUR/USD sliding 0.27% to 1.2781 and EUR/JPY down 0.22% to 100.05.
Earlier Monday, a report showed that investor confidence in the euro zone improved this month for the first time since March, largely due to optimism surrounding the ECB’s bond purchasing plan.
Sentix said its index of investor confidence improved to minus 23.2 in September from a reading of minus 30.3 in August, defying expectations for a reading of minus 30.7.