Investing.com – The euro was down against the pound on Monday, retreating from a 5-month high to fall to a fresh 2-day low, amid concerns over the outlook for growth in the 16-nation euro zone.
EUR/GBP hit 0.8640 during European afternoon trade, the pair’s lowest since September 30; the pair subsequently consolidated at 0.8644, tumbling 0.84%.
The pair was likely to find support at 0.8560, the low of September 30 and resistance at 0.8716, last Friday’s high.
On Sunday, Nobel Prize winning economist Joseph Stiglitz said that the wave of austerity sweeping across Europe could trigger a new recession. Stiglitz said the euro is under pressure because some countries such as Germany are running trade surpluses while Ireland, Portugal, Greece and others have deficits.
Mr. Stiglitz also said that the euro is a currency experiment "that may now be faltering."
Meanwhile, the euro was also down against the U.S. dollar, with EUR/USD falling 0.74% to hit 1.3689.
Earlier in the day, U.K. finance minister George Osborne said Britain was out of the "financial danger zone," but needed to stick to its plans to cut the budget deficit.
EUR/GBP hit 0.8640 during European afternoon trade, the pair’s lowest since September 30; the pair subsequently consolidated at 0.8644, tumbling 0.84%.
The pair was likely to find support at 0.8560, the low of September 30 and resistance at 0.8716, last Friday’s high.
On Sunday, Nobel Prize winning economist Joseph Stiglitz said that the wave of austerity sweeping across Europe could trigger a new recession. Stiglitz said the euro is under pressure because some countries such as Germany are running trade surpluses while Ireland, Portugal, Greece and others have deficits.
Mr. Stiglitz also said that the euro is a currency experiment "that may now be faltering."
Meanwhile, the euro was also down against the U.S. dollar, with EUR/USD falling 0.74% to hit 1.3689.
Earlier in the day, U.K. finance minister George Osborne said Britain was out of the "financial danger zone," but needed to stick to its plans to cut the budget deficit.