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Forex - EUR/GBP erases gains, pulls away from 5-week high

Published 10/17/2011, 07:28 AM
EUR/USD
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EUR/GBP
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Investing.com – The euro erased gains against the pound on Monday, puling back from a five-week high as hopes for a plan to resolve the debt crisis in the euro zone were dented, following remarks by German Finance Minister Wolfgang Schaeuble.

EUR/GBP retreated from 0.8796, the pair’s highest since September 8, to hit 0.8756 during European early afternoon trade, shedding 0.20%.

The pair was likely to find support at 0.8706, last Thursday’s low and resistance at 0.8827, the high of September 7.

Schaeuble said the upcoming European Union summit, due to be held on October 23, would not yield a definitive solution to the financial crisis in the euro zone. His remarks came after German Chancellor Angela Merkel said "the dream of resolving all problems at the EU summit" was impossible.

The euro was broadly higher earlier as hopes grew that a comprehensive package might take shape to address the Greek debt crisis and boost the firepower of the European Financial Stability Facility in time for the euro zone summit.

The euro was also lower against the U.S. dollar, with EUR/USD falling 0.68% to hit 1.3787.

Later in the day, the U.S. was to publish official data on industrial production, as well as a report on manufacturing activity in New York state.

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