Investing.com – The euro was down against the pound on Thursday, falling to hit a fresh 12-day low ahead of a potentially devisive EU summit meeting to examine proposals for tougher sanctions against governments failing to observe deficit caps.
EUR/GBP hit 0.8702 during European afternoon trade, the pair’s lowest since October 12; the pair subsequently consolidated at 0.8721, shedding 0.12%.
The pair weas likely to find short-term support at 0.8686, the low of October 6 and resistance at 0.8821, the high of October 20.
Ahead of the two day meeting in Brussels German Chancellor Angela Merkel insisted that sanctions against offenders should include the loss of voting rights on the European Council. However this measure would require changes to the main EU treaty, which few European governments favor.
Also Thursday, European Central Bank board member Axel Weber, warned that "large and persistent" current-account deficits in a number of countries on the euro-zone's geographic periphery have created unsustainable imbalances inside the currency system.
"While their impact on global imbalances is rather limited, major macroeconomic imbalances within the euro area have proven to be a hazard for the single currency as a whole," Weber said.
Meanwhile, the euro was up against the U.S. dollar, with EUR/USD soaring 0.82% to hit 1.3882.
Earlier in the day, industry data showed that U.K. retail sales fell more-than-expected in October. Separately, U.K. mortgage lender Nationwide said that its house price index fell more-than-expected in October.
EUR/GBP hit 0.8702 during European afternoon trade, the pair’s lowest since October 12; the pair subsequently consolidated at 0.8721, shedding 0.12%.
The pair weas likely to find short-term support at 0.8686, the low of October 6 and resistance at 0.8821, the high of October 20.
Ahead of the two day meeting in Brussels German Chancellor Angela Merkel insisted that sanctions against offenders should include the loss of voting rights on the European Council. However this measure would require changes to the main EU treaty, which few European governments favor.
Also Thursday, European Central Bank board member Axel Weber, warned that "large and persistent" current-account deficits in a number of countries on the euro-zone's geographic periphery have created unsustainable imbalances inside the currency system.
"While their impact on global imbalances is rather limited, major macroeconomic imbalances within the euro area have proven to be a hazard for the single currency as a whole," Weber said.
Meanwhile, the euro was up against the U.S. dollar, with EUR/USD soaring 0.82% to hit 1.3882.
Earlier in the day, industry data showed that U.K. retail sales fell more-than-expected in October. Separately, U.K. mortgage lender Nationwide said that its house price index fell more-than-expected in October.