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.
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.