Investing.com - The euro was trading close to a three-and-a-half year low against the pound on Wednesday, as ongoing concerns over political turmoil in Greece fuelled fears over the possibility of a disorderly default or a possible exit from the euro zone.
EUR/GBP hit 0.8034 during European morning trade, the pair’s lowest since early November 2008; the pair subsequently consolidated at 0.8052, inching up 0.04%.
The pair was likely to find short-term support at 0.8034, the session low and a three-and-a-half year low and resistance at 0.8079, Monday’s high.
Concerns over Greece’s future in the single currency bloc mounted on Tuesday after Alexis Tsipras, the head of Greece’s second-biggest party Syriza, declared that Greece's financial aid package is null and void, and called for a moratorium on Greek debt payments.
Tsipras was to hold talks with Greece’s leading political parties later in the day, as attempts to form a government continue, but a second round of elections is looking increasingly likely.
Investors were also fearful that French president-elect Francois Hollande’s focus on growth rather than austerity measures as a means to tackle the euro zone’s debt crisis could spark tensions with Germany.
The euro found some support after official data showed that German exports and imports both hit record highs in March, fuelling hopes that the euro zone’s largest economy is weathering the effects of the debt crisis.
The Federal Statistics Office said exports increased by 0.9% to EUR91.8 billion, while imports rose 1.2% to EUR78.1 billion.
The euro was hovering just above a three-month low against the U.S. dollar, with EUR/USD shedding 0.25% to hit 1.2973 and was close to a two-and-a-half month low against the yen, with EUR/JPY losing 0.52% to hit 103.33.
Also Wednesday, data showed that U.K. retail sales posted their biggest fall in more than a year in April, as unseasonably wet weather weighed on sales of summer clothing and outdoor goods.
The British Retail Consortium said retail sales tumbled 3.3% year-on-year, following a 1.3% rise in March, confounding expectations for a 0.5% gain.
EUR/GBP hit 0.8034 during European morning trade, the pair’s lowest since early November 2008; the pair subsequently consolidated at 0.8052, inching up 0.04%.
The pair was likely to find short-term support at 0.8034, the session low and a three-and-a-half year low and resistance at 0.8079, Monday’s high.
Concerns over Greece’s future in the single currency bloc mounted on Tuesday after Alexis Tsipras, the head of Greece’s second-biggest party Syriza, declared that Greece's financial aid package is null and void, and called for a moratorium on Greek debt payments.
Tsipras was to hold talks with Greece’s leading political parties later in the day, as attempts to form a government continue, but a second round of elections is looking increasingly likely.
Investors were also fearful that French president-elect Francois Hollande’s focus on growth rather than austerity measures as a means to tackle the euro zone’s debt crisis could spark tensions with Germany.
The euro found some support after official data showed that German exports and imports both hit record highs in March, fuelling hopes that the euro zone’s largest economy is weathering the effects of the debt crisis.
The Federal Statistics Office said exports increased by 0.9% to EUR91.8 billion, while imports rose 1.2% to EUR78.1 billion.
The euro was hovering just above a three-month low against the U.S. dollar, with EUR/USD shedding 0.25% to hit 1.2973 and was close to a two-and-a-half month low against the yen, with EUR/JPY losing 0.52% to hit 103.33.
Also Wednesday, data showed that U.K. retail sales posted their biggest fall in more than a year in April, as unseasonably wet weather weighed on sales of summer clothing and outdoor goods.
The British Retail Consortium said retail sales tumbled 3.3% year-on-year, following a 1.3% rise in March, confounding expectations for a 0.5% gain.