Investing.com – The euro erased losses against the pound on Tuesday, rebounding from a four-day low, as expectations for a near-term interest rate hike by the European Central Bank supported the single currency.
EUR/GBP clawed up from 0.8470, the pair’s lowest since February 23, to hit 0.8498 during European afternoon trade, gaining 0.09%.
The pair was likely to find support at 0.8119, the low of February 23 and resistance at 0.8554, Monday’s high.
Earlier in the day, data showed that the euro zone's manufacturing sector grew at the fastest pace in almost 11 years in February, driven by a record expansion in Germany.
The Markit final euro-zone manufacturing purchasing managers' index rose to 59 in February from 57.3 the previous month, the highest level since June 2000. A reading above 50 indicates the sector is growing.
A separate preliminary report showed that consumer price inflation in the euro zone rose 2.4% in February, hitting its highest level since October 2008.
Also Tuesday, the European Commission said the euro zone economy was likely to grow faster than previously forecast in 2011. The EU executive said it now expected the euro zone economy to grow 1.6% in 2011, up from the 1.5% rate of growth it forecast in November.
The euro was also up against the U.S. dollar, with EUR/USD rising 0.11% to hit 1.3820.
Elsewhere Tuesday, data showed that manufacturing activity in the U.K. maintained its recent record pace of growth in February, while a separate report showed that net lending to individuals rose more-than-expected in January.
EUR/GBP clawed up from 0.8470, the pair’s lowest since February 23, to hit 0.8498 during European afternoon trade, gaining 0.09%.
The pair was likely to find support at 0.8119, the low of February 23 and resistance at 0.8554, Monday’s high.
Earlier in the day, data showed that the euro zone's manufacturing sector grew at the fastest pace in almost 11 years in February, driven by a record expansion in Germany.
The Markit final euro-zone manufacturing purchasing managers' index rose to 59 in February from 57.3 the previous month, the highest level since June 2000. A reading above 50 indicates the sector is growing.
A separate preliminary report showed that consumer price inflation in the euro zone rose 2.4% in February, hitting its highest level since October 2008.
Also Tuesday, the European Commission said the euro zone economy was likely to grow faster than previously forecast in 2011. The EU executive said it now expected the euro zone economy to grow 1.6% in 2011, up from the 1.5% rate of growth it forecast in November.
The euro was also up against the U.S. dollar, with EUR/USD rising 0.11% to hit 1.3820.
Elsewhere Tuesday, data showed that manufacturing activity in the U.K. maintained its recent record pace of growth in February, while a separate report showed that net lending to individuals rose more-than-expected in January.