Investing.com - The euro edged higher against the pound on Monday, as the single currency found support after Greece’s government approved an austerity budget for 2013, but gains were limited ahead of a meeting of euro zone finance ministers later in the day.
EUR/GBP hit 0.8012 during European morning trade, the pair’s highest since November 7; the pair subsequently consolidated at 0.8010, gaining 0.19%.
The pair was likely to find support at 0.7966, Friday’s low and resistance at 0.8030, the high of November 7.
Greece’s government approved a budget of spending cuts and tax increases for 2013 late Sunday, just days after the parliament narrowly approved a EUR13.5 billion austerity package required to secure the country’s next installment of financial aid.
The eurogroup of finance ministers were to hold talks in Brussels later Monday, to discuss unlocking Greece’s next tranche of aid, but a final decision was not expected to be taken at the meeting.
Without the next aid installment, Greece risks default on November 16, when Athens must repay EUR5 billion of debts.
Overall market sentiment remained subdued amid concerns over the U.S. fiscal cliff, automatic tax hikes and spending cuts due to come into effect on January 1, which could threaten U.S. and global growth.
Markets shrugged off data showing that Japan’s economy contracted by an annualized 3.5% in the third quarter, but the data underlined concerns over a slowdown in global growth.
The report was offset by official data from China over the weekend showing that exports increased by 11.6% from a year earlier in October, while the trade surplus widened to the largest in almost four years.
The euro pushed higher against the dollar and the yen, with EUR/USD rising 0.14% to 1.2727 and EUR/JPY edging up 0.08% to 101.07.
Later Monday, German Chancellor Angela Merkel was to travel to Lisbon to hold talks with Portuguese political leaders, amid public opposition to the country’s austerity cuts.
EUR/GBP hit 0.8012 during European morning trade, the pair’s highest since November 7; the pair subsequently consolidated at 0.8010, gaining 0.19%.
The pair was likely to find support at 0.7966, Friday’s low and resistance at 0.8030, the high of November 7.
Greece’s government approved a budget of spending cuts and tax increases for 2013 late Sunday, just days after the parliament narrowly approved a EUR13.5 billion austerity package required to secure the country’s next installment of financial aid.
The eurogroup of finance ministers were to hold talks in Brussels later Monday, to discuss unlocking Greece’s next tranche of aid, but a final decision was not expected to be taken at the meeting.
Without the next aid installment, Greece risks default on November 16, when Athens must repay EUR5 billion of debts.
Overall market sentiment remained subdued amid concerns over the U.S. fiscal cliff, automatic tax hikes and spending cuts due to come into effect on January 1, which could threaten U.S. and global growth.
Markets shrugged off data showing that Japan’s economy contracted by an annualized 3.5% in the third quarter, but the data underlined concerns over a slowdown in global growth.
The report was offset by official data from China over the weekend showing that exports increased by 11.6% from a year earlier in October, while the trade surplus widened to the largest in almost four years.
The euro pushed higher against the dollar and the yen, with EUR/USD rising 0.14% to 1.2727 and EUR/JPY edging up 0.08% to 101.07.
Later Monday, German Chancellor Angela Merkel was to travel to Lisbon to hold talks with Portuguese political leaders, amid public opposition to the country’s austerity cuts.