Investing.com - The euro erased gains against the pound on Wednesday, as concerns over negotiations to restructure Greek debt overshadowed better-than-forecast German business confidence data, while U.K. data showed that the country is moving closer to a recession.
EUR/GBP pulled back from 0.8385, the session high, to hit 0.8331 during European morning trade, slipping 0.12%.
The pair was likely to find short-term support at 0.8311, Tuesday’s low and resistance at 0.8385, the session high.
Concerns over a potential Greek default persisted as talks between euro zone finance ministers on a deal to help restructure the country’s sovereign debt stalled on Tuesday.
The euro briefly found support after data showed that German business confidence improved more-than-expected in January, moving higher for the third consecutive month.
The German research institute Ifo said its Business Climate Index rose to 108.3 in January from a reading of 107.3 the previous month. Analysts had expected the index to ease up to 107.5 in January.
In the U.K., preliminary data showed earlier that gross domestic product contracted more-than-expected in the fourth quarter, ticking down 0.2% after a 0.6% rise the previous quarter. Analysts had expected GDP to decline 0.1% in the fourth quarter.
Meanwhile, the minutes of the Bank of England’s latest policy meeting revealed that policymakers believe that the U.K. is still facing considerable risks from the global economy.
The minutes came one day after BoE Governor Mervyn King said recent fall in inflation had given the central bank leeway to inject more stimulus into the economy and keep interest rates at record lows.
Elsewhere, the pound was lower against the U.S. dollar, with GBP/USD shedding 0.26% to hit 1.5583.
Later Wednesday, the Federal Reserve was to announce its benchmark rate and publish its official rate statement. In addition, the U.S. was to release industry data on pending home sales.
Meanwhile, the World Economic Forum was to begin its five-day annual meeting in Davos in Switzerland.
EUR/GBP pulled back from 0.8385, the session high, to hit 0.8331 during European morning trade, slipping 0.12%.
The pair was likely to find short-term support at 0.8311, Tuesday’s low and resistance at 0.8385, the session high.
Concerns over a potential Greek default persisted as talks between euro zone finance ministers on a deal to help restructure the country’s sovereign debt stalled on Tuesday.
The euro briefly found support after data showed that German business confidence improved more-than-expected in January, moving higher for the third consecutive month.
The German research institute Ifo said its Business Climate Index rose to 108.3 in January from a reading of 107.3 the previous month. Analysts had expected the index to ease up to 107.5 in January.
In the U.K., preliminary data showed earlier that gross domestic product contracted more-than-expected in the fourth quarter, ticking down 0.2% after a 0.6% rise the previous quarter. Analysts had expected GDP to decline 0.1% in the fourth quarter.
Meanwhile, the minutes of the Bank of England’s latest policy meeting revealed that policymakers believe that the U.K. is still facing considerable risks from the global economy.
The minutes came one day after BoE Governor Mervyn King said recent fall in inflation had given the central bank leeway to inject more stimulus into the economy and keep interest rates at record lows.
Elsewhere, the pound was lower against the U.S. dollar, with GBP/USD shedding 0.26% to hit 1.5583.
Later Wednesday, the Federal Reserve was to announce its benchmark rate and publish its official rate statement. In addition, the U.S. was to release industry data on pending home sales.
Meanwhile, the World Economic Forum was to begin its five-day annual meeting in Davos in Switzerland.