Forex - Broadly weaker euro down against pound

Published 02/16/2012, 05:34 AM
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Investing.com - The broadly weaker euro was lower against the pound on Thursday, as concerns over delays to a second Greek bailout weighed, while the pound remained supported by diminished expectations for more stimulus by the Bank of England.

EUR/GBP hit 0.8288 during European morning trade, the pair’s lowest since February 7; the pair subsequently consolidated at 0.8289, shedding 0.42%.

The pair was likely to find support at 0.8264, the low of February 6 and resistance at 0.8324, the session high.

Concerns over Greece escalated after it emerged that European Union officials are considering a delay to all or part of Greece's second bailout package until after a general election, which is expected to take place in April.

Officials are examining the possibility of extending a bridging loan to Athens, which would allow Greece to meet EUR14.4 billion in repayments which come due on March 20.

The pound found support after the BoE’s quarterly inflation report on Tuesday revised up the bank’s two-year inflation forecast, dampening expectations for more quantitative easing measures.

Earlier Thursday, a report by lender Nationwide showed British consumer confidence climbed to its highest level in five months in January as people's view of the outlook six months ahead grew more upbeat.

The pound was slightly lower against the U.S. dollar, with GBP/USD slipping 0.12% to hit 1.5672.

On Wednesday, the minutes of the Federal Reserve’s January policy meeting showed that policymakers were still divided about whether to launch fresh easing measures to shore up growth, but were still actively considering such a move.


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