Forex - EUR/GBP erases losses after Barroso comments

Published 09/14/2011, 05:46 AM
EUR/USD
-
EUR/GBP
-
Investing.com – The euro erased losses against the pound on Wednesday, pulling away from the daily low after the head of the European Commission said options for the introduction of euro area bonds would soon be presented.

EUR/GBP pulled back from 0.8639, the daily low, to hit 0.8670 during European morning trade, inching up 0.03%.

The pair was likely to find support at 0.8594, Tuesday’s low and resistance at 0.8719, last Friday’s high.

The euro found support after Commission President Jose Manuel Barroso said it would soon present options for the introduction of euro area bonds, through which the 17 euro zone nations could collectively issue debt.

However he warned that the measure alone would not be enough to end the regions’ debt crisis.

In the U.K., official data showed that the number of people claiming unemployment benefits rose less-than-expected in August.

The Office for National Statistics said the number of people claiming jobless benefit rose by 20,300 last month, down from a rise of 33,700 in July and below forecasts for an increase of 35,000.

The unemployment rate remained unchanged at 7.9%, in line with expectations.

But the pound remained under pressure after the report showed that the number of people without work on the wider ILO measure showed its biggest rise in two years in the three months to July, as public sector employment fell sharply.

Meanwhile, the average earnings index rose to 2.8%, slightly more that the forecast 2.7% increase.

The euro remained lower against the U.S. dollar, with EUR/USD slipping 0.11% to hit 1.3665.

Later in the day, Greek Prime Minister George Papandreou was expected to hold a conference call with German Chancellor Angela Merkel and French President Nicolas Sarkozy, to discuss developments in Greece.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.