Investing.com - The euro was lower against the pound on Tuesday, as ongoing uncertainty over Spain and Greece dented demand for the single currency, while concerns over the outlook for global growth also weighed.
EUR/GBP hit 0.8064 during European late morning trade, the session low; the pair subsequently consolidated at 0.8071, shedding 0.25%.
The pair was likely to find support at 0.8029, Friday’s low and resistance at 0.8098, the session high and a two-week high.
Overall market sentiment was hit after the International Monetary Fund cut its forecast for global growth this year to 3.3% from 3.5% earlier and warned that a failure by European and U.S. policymakers to tackle current problems could threaten what it said was an already “slow and bumpy” economic recovery.
Demand for the euro was hit as uncertainty over how soon Spain may formally request a bailout lingered after euro zone finance ministers said Monday that Madrid did not need external financial aid yet.
Investors also remained cautious amid ongoing uncertainty over whether international creditors will extend loans to Greece, as the country struggles to meet deficit reduction targets.
In testimony to the European Parliament earlier, European Central Bank President Mario Draghi reiterated that governments cannot rely on the ECB to fix the crisis in the region and said that national reforms were vital.
Mr. Draghi also warned that he expected economic activity in the euro zone to remain weak, calling the road ahead long and uphill.
Sterling remained under pressure after the IMF said the U.K. economy would contract by 0.4% in 2012 before recovering to 1.1% growth next year, compared to its July forecast for 0.2% growth this year and 1.4% growth in 2013.
Meanwhile, official data showed that manufacturing production in the U.K. fell by 1.1% in August, compared to expectations for a 0.6% drop, while industrial production declined 0.5%, in line with expectations.
A separate report showed that the U.K. trade deficit widened to GBP9.8 billion in August, against expectations for a deficit of GBP8.5 billion.
The euro extended losses against the U.S. dollar and the yen, with EUR/USD down 0.31% to 1.2927 and EUR/JPY sliding 0.43% to 101.14.
Elsewhere Tuesday, finance ministers from the European Union were holding a day of meetings in Brussels, while German Chancellor Angela Merkel was in Athens for talks with Greek political leaders.
EUR/GBP hit 0.8064 during European late morning trade, the session low; the pair subsequently consolidated at 0.8071, shedding 0.25%.
The pair was likely to find support at 0.8029, Friday’s low and resistance at 0.8098, the session high and a two-week high.
Overall market sentiment was hit after the International Monetary Fund cut its forecast for global growth this year to 3.3% from 3.5% earlier and warned that a failure by European and U.S. policymakers to tackle current problems could threaten what it said was an already “slow and bumpy” economic recovery.
Demand for the euro was hit as uncertainty over how soon Spain may formally request a bailout lingered after euro zone finance ministers said Monday that Madrid did not need external financial aid yet.
Investors also remained cautious amid ongoing uncertainty over whether international creditors will extend loans to Greece, as the country struggles to meet deficit reduction targets.
In testimony to the European Parliament earlier, European Central Bank President Mario Draghi reiterated that governments cannot rely on the ECB to fix the crisis in the region and said that national reforms were vital.
Mr. Draghi also warned that he expected economic activity in the euro zone to remain weak, calling the road ahead long and uphill.
Sterling remained under pressure after the IMF said the U.K. economy would contract by 0.4% in 2012 before recovering to 1.1% growth next year, compared to its July forecast for 0.2% growth this year and 1.4% growth in 2013.
Meanwhile, official data showed that manufacturing production in the U.K. fell by 1.1% in August, compared to expectations for a 0.6% drop, while industrial production declined 0.5%, in line with expectations.
A separate report showed that the U.K. trade deficit widened to GBP9.8 billion in August, against expectations for a deficit of GBP8.5 billion.
The euro extended losses against the U.S. dollar and the yen, with EUR/USD down 0.31% to 1.2927 and EUR/JPY sliding 0.43% to 101.14.
Elsewhere Tuesday, finance ministers from the European Union were holding a day of meetings in Brussels, while German Chancellor Angela Merkel was in Athens for talks with Greek political leaders.