Investing.com - The euro edged higher against the pound on Tuesday, after upbeat service sector data from Germany and France but gains were capped by mounting expectations for fresh easing by the European Central Bank, coupled with concerns over a potential Greek exit from the euro zone.
EUR/GBP hit 0.7849 during European afternoon trade, the session high; the pair subsequently consolidated at 0.7845, gaining 0.26%.
The pair was likely to find support at 0.7807, the low of December 30 and a more than one-month low and resistance at 0.7870, the high of December 26.
Research firm Markit earlier reported that Germany's services purchasing manager's index rose to 52.1 last month from a reading of 51.4 in November.
In France, the services PMI swung into expansion territory in December with a reading of 50.6, up from 49.8 the previous month.
However, the Markit composite PMI, which measures activity in the manufacturing and services sectors in the euro area, was revised down to 51.4 in December from the preliminary estimate of 51.7. The figure was still higher than November’s reading of 51.1.
The weak data added to pressure on the ECB to implement quantitative easing measures ahead of its upcoming meeting on January 22.
Separately, ongoing uncertainty over Greece’s future in the euro zone if far-left anti-austerity party Syriza won elections due to be held later this month also weighed on the single currency.
In the U.K., data on Tuesday showed that the Markit/CIPS Services PMI decreased to 55.8 last month from a reading of 58.6 in November. Analysts had expected the index to dip to 58.5 in December.
The report underlined expectations that the Bank of England will keep rates on hold for most of 2015.
The euro was trading near nine-year lows against the U.S. dollar, with EUR/USD down 0.18% at 1.1911.
Later in the day, the Institute of Supply Management was to release data on U.S. non-manufacturing activity.