Forex - EUR/GBP falls as markets brace for uncertainty

Published 01/08/2012, 10:48 PM
Updated 01/08/2012, 10:55 PM
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Investing.com - The euro slid against the pound on Monday as investors continued selling euro positions before jumping to the sidelines to await more concrete guidance from the continent's leadership.

EUR/GBP hit .8238 in Asian trading on Monday, down 0.10% and up from a session low of .8222 and off from a high of .8244.

The pair was likely to find support at .8222, Monday's earlier low, and resistance at .8266, Friday's high.

In Europe later Monday, French President Nicolas Sarkozky and German Chancellor Angela Merkel are set to meet to discuss ways out of the current debt crisis.

Weeks of spiking bond yields and bank moves to repeatedly stash money in European Central Bank overnight deposit accounts are jangling nerves that the crisis is threatening to escalate.

European uncertainty continues to send investors racing to safety currencies, which have included the pound lately.

Meanwhile, the euro was lower against the yen and Swiss franc, with EUR/JPY falling 0.13% to hit 97.62 and EUR/CHF falling 0.05% to hit 1.2134.

Later Monday, markets will await a eurozone report on investor confidence among member nations as well as data on German industrial production figures.

Also Monday, Federal Reserve Open Market Committee member Dennis Lockhart is set to speak in public.

U.S. consumer credit figures will be released while in Europe, traders will keep an eye on Swiss unemployment and retail sales figures.

Also on Monday, data on changes in U.K. home prices will hit the wire as will Chinese trade balance figures.







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