Investing.com - The euro extended gains against the pound on Thursday, climbing to a fresh one-week high after positive German factory data and amid guarded optimism over the outcome of a Greek private sector debt swap deal.
EUR/GBP hit 0.8372 during European morning trade, the pair’s highest since March 1; the pair subsequently consolidated at 0.8371, gaining 0.22%.
The pair was likely to find support at 0.8318, Tuesday’s low and resistance at 0.8402, the high of February 21.
A report earlier showed that German industrial production rose by a seasonally adjusted 1.6% in January, beating expectations for a 1.1% increase.
Industrial production for December was revised to a 2.6% drop from a previously reported 2.9% decline.
The euro was also supported by reports that a number of major European financial institutions had signed up to Greece’s bond swap deal, which is aimed at writing down 53.5% of the country’s EUR177 billion debt.
Major Greek banks, along with most pension funds, have also agreed to participate in the bond swap.
Investors were looking ahead to the Bank of England’s policy setting meeting later in the day, amid expectations that the bank would not announce any change to its benchmark interest rate or to the size of its asset purchase program.
The euro was also higher against the U.S. dollar and the yen, with EUR/USD rising 0.60% to hit 1.3228 and EUR/JPY jumping 1.08% to hit 107.76.
Also Thursday, the European Central Bank was to hold its policy setting meeting, which was to be followed by a closely watched press conference. In addition, the U.S. was to produce government data on initial jobless claims.
EUR/GBP hit 0.8372 during European morning trade, the pair’s highest since March 1; the pair subsequently consolidated at 0.8371, gaining 0.22%.
The pair was likely to find support at 0.8318, Tuesday’s low and resistance at 0.8402, the high of February 21.
A report earlier showed that German industrial production rose by a seasonally adjusted 1.6% in January, beating expectations for a 1.1% increase.
Industrial production for December was revised to a 2.6% drop from a previously reported 2.9% decline.
The euro was also supported by reports that a number of major European financial institutions had signed up to Greece’s bond swap deal, which is aimed at writing down 53.5% of the country’s EUR177 billion debt.
Major Greek banks, along with most pension funds, have also agreed to participate in the bond swap.
Investors were looking ahead to the Bank of England’s policy setting meeting later in the day, amid expectations that the bank would not announce any change to its benchmark interest rate or to the size of its asset purchase program.
The euro was also higher against the U.S. dollar and the yen, with EUR/USD rising 0.60% to hit 1.3228 and EUR/JPY jumping 1.08% to hit 107.76.
Also Thursday, the European Central Bank was to hold its policy setting meeting, which was to be followed by a closely watched press conference. In addition, the U.S. was to produce government data on initial jobless claims.