Investing.com - The euro edged lower against the pound on Monday, as renewed worries over the threat of contagion in the euro zone outweighed positive data on German business sentiment.
EUR/GBP hit 0.8346 during European morning trade, the session low; the pair subsequently consolidated at 0.8348, shedding 0.18%.
The pair was likely to find support at 0.8298, the low of March 22 and resistance at 0.8367, the session high and a three-day high.
Sentiment on the single currency was hit after Italian Prime Minister Mario Monti warned over the weekend that the threat of contagion from Spain could cause the debt crisis in the euro zone to flare up again.
On Friday, Spain’s Prime Minister Mariano Rajoy is due to announce EUR40 billion in budget cuts, as he attempts to slash the country’s deficit in the face of a looming recession.
Concerns over Spain overshadowed a report showing that German business confidence improved in March.
The Ifo Institute said earlier that its index of German business confidence inched up to 109.8, from a reading of 109.6 in February. Analysts had expected the index to ease up to 109.7 this month.
The euro was also lower against the U.S. dollar but advanced against the yen, with EUR/USD shedding 0.29% to hit 1.3231 and EUR/JPY rising 0.29% to hit 109.59.
Later Monday, the U.S. was to publish industry data on pending home sales and Federal Reserve Chairman Ben Bernanke was to speak.
EUR/GBP hit 0.8346 during European morning trade, the session low; the pair subsequently consolidated at 0.8348, shedding 0.18%.
The pair was likely to find support at 0.8298, the low of March 22 and resistance at 0.8367, the session high and a three-day high.
Sentiment on the single currency was hit after Italian Prime Minister Mario Monti warned over the weekend that the threat of contagion from Spain could cause the debt crisis in the euro zone to flare up again.
On Friday, Spain’s Prime Minister Mariano Rajoy is due to announce EUR40 billion in budget cuts, as he attempts to slash the country’s deficit in the face of a looming recession.
Concerns over Spain overshadowed a report showing that German business confidence improved in March.
The Ifo Institute said earlier that its index of German business confidence inched up to 109.8, from a reading of 109.6 in February. Analysts had expected the index to ease up to 109.7 this month.
The euro was also lower against the U.S. dollar but advanced against the yen, with EUR/USD shedding 0.29% to hit 1.3231 and EUR/JPY rising 0.29% to hit 109.59.
Later Monday, the U.S. was to publish industry data on pending home sales and Federal Reserve Chairman Ben Bernanke was to speak.