Investing.com – The euro extended gains against the pound on Wednesday, rising to a three-day high after the minutes of the Bank of England’s September policy meeting showed that policymakers are leaning towards more monetary easing.
EUR/GBP hit 0.8750 during European morning trade, the pair’s highest since September 16; the pair subsequently consolidated at 0.8730, gaining 0.26%.
The pair was likely to find support at 0.8669, Monday’s low and resistance at 0.8788, the high of September 16.
The minutes showed most policymakers believed the economic conditions seen in the past month had strengthened the case for an "immediate" return to the policy of quantitative easing.
"For some members, a continuation of the conditions seen over the past month would probably be sufficient to justify an expansion of the asset purchase program at a subsequent meeting," the minutes said.
A separate report showed that U.K. public sector net borrowing rose more-than-expected in August, climbing to GBP13.2 billion, above expectations for an increase to GBP11.4 billion.
Meanwhile, concerns over the debt crisis in the euro zone eased after Greece’s finance minister said “good progress” had been made in a second round of talks with the European Union and International Monetary Fund on Tuesday and added that talks would continue this weekend.
Elsewhere, the euro was lower against the U.S. dollar, with EUR/USD slipping 0.18% to hit 1.3674.
Later Wednesday, the Federal Reserve was to conclude its two-day policy meeting; Chairman Ben Bernanke expected to announce plans to replace short-term Treasuries with long-term bonds, in a move known as Operation Twist.
EUR/GBP hit 0.8750 during European morning trade, the pair’s highest since September 16; the pair subsequently consolidated at 0.8730, gaining 0.26%.
The pair was likely to find support at 0.8669, Monday’s low and resistance at 0.8788, the high of September 16.
The minutes showed most policymakers believed the economic conditions seen in the past month had strengthened the case for an "immediate" return to the policy of quantitative easing.
"For some members, a continuation of the conditions seen over the past month would probably be sufficient to justify an expansion of the asset purchase program at a subsequent meeting," the minutes said.
A separate report showed that U.K. public sector net borrowing rose more-than-expected in August, climbing to GBP13.2 billion, above expectations for an increase to GBP11.4 billion.
Meanwhile, concerns over the debt crisis in the euro zone eased after Greece’s finance minister said “good progress” had been made in a second round of talks with the European Union and International Monetary Fund on Tuesday and added that talks would continue this weekend.
Elsewhere, the euro was lower against the U.S. dollar, with EUR/USD slipping 0.18% to hit 1.3674.
Later Wednesday, the Federal Reserve was to conclude its two-day policy meeting; Chairman Ben Bernanke expected to announce plans to replace short-term Treasuries with long-term bonds, in a move known as Operation Twist.