Investing.com – The euro erased losses against the pound on Monday, rebounding from a 4-day low following a negative assessment of the U.K.’s economic outlook by a former Bank of England policy maker.
EUR/GBP hit 0.8773, a fresh daily high, after clawing back up from 0.8703 during European afternoon trade, gaining 0.37%.
The pair was likely to find support at 0.8625, the low of October 6 and resistance at 0.8817, last Thursday’s high.
Earlier in the day, former BOE policymaker David Blanchflower warned that the U.K. economy was in "desperate danger" of slipping back into recession and called the government's planned spending cuts the "greatest macro-economic mistake in a century".
The pound was also down against the U.S. dollar, with GBP/USD shedding 0.47% to hit 1.5915.
On Sunday, European Central Bank president Jean-Claude Trichet distanced himself from remarks by ECB council member Axel Weber who said last week that the risk of recession in Europe was negligible and that the central bank's bond purchase program should be phased out.
Trichet said that the majority of the banks governing board did not agree with that view.
EUR/GBP hit 0.8773, a fresh daily high, after clawing back up from 0.8703 during European afternoon trade, gaining 0.37%.
The pair was likely to find support at 0.8625, the low of October 6 and resistance at 0.8817, last Thursday’s high.
Earlier in the day, former BOE policymaker David Blanchflower warned that the U.K. economy was in "desperate danger" of slipping back into recession and called the government's planned spending cuts the "greatest macro-economic mistake in a century".
The pound was also down against the U.S. dollar, with GBP/USD shedding 0.47% to hit 1.5915.
On Sunday, European Central Bank president Jean-Claude Trichet distanced himself from remarks by ECB council member Axel Weber who said last week that the risk of recession in Europe was negligible and that the central bank's bond purchase program should be phased out.
Trichet said that the majority of the banks governing board did not agree with that view.