Investing.com – The euro rose to a three-day high against the pound on Tuesday, after the U.K. Chancellor of the Exchequer increased a tax on banks, dampening sentiment towards the pound.
EUR/GBP hit 0.848 during European early afternoon trade, the pair’s highest since Friday; the pair subsequently consolidated at 0.8476, gaining 0.54%.
The pair was likely to find support at 0.8418, the days low and resistance at 0.8531, last Thursday’s high.
The U.K. will temporarily charge banks 0.1% on short-term liabilities and 0.05% for long-term liabilities in March and April. The levy will enable the government to raise GBP2.5 billion in the financial year ending in April, rather than in future years as was originally intended.
Earlier in the day, industry data showed that U.K. retail sales rose at the fastest pace in ten months in January while a separate report said that U.K. house prices rose to their highest level since July, in the three months to January.
The euro was also up against the U.S. dollar, with EUR/USD climbing 0.57% to hit 1.3662.
Also Tuesday, official data showed that German industrial production fell in December, for the second time in as many months, as unusually harsh winter weather hit the construction industry.
EUR/GBP hit 0.848 during European early afternoon trade, the pair’s highest since Friday; the pair subsequently consolidated at 0.8476, gaining 0.54%.
The pair was likely to find support at 0.8418, the days low and resistance at 0.8531, last Thursday’s high.
The U.K. will temporarily charge banks 0.1% on short-term liabilities and 0.05% for long-term liabilities in March and April. The levy will enable the government to raise GBP2.5 billion in the financial year ending in April, rather than in future years as was originally intended.
Earlier in the day, industry data showed that U.K. retail sales rose at the fastest pace in ten months in January while a separate report said that U.K. house prices rose to their highest level since July, in the three months to January.
The euro was also up against the U.S. dollar, with EUR/USD climbing 0.57% to hit 1.3662.
Also Tuesday, official data showed that German industrial production fell in December, for the second time in as many months, as unusually harsh winter weather hit the construction industry.