Forex - EUR/GBP falls on Greek debt talks

Published 01/20/2012, 01:59 PM
Updated 01/20/2012, 02:01 PM
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Investing.com - The euro weakened against the pound Friday as the market waited for signs of progress from talks between Greece and its private creditors.
 
EUR/GBP hit 0.8319 on Friday, down 0.66%, up from a session low of 0.8317 and off from a high of 0.8378.
 
The pair likely tested support at 0.8317, the earlier session low, and resistance at 0.8378, the earlier Friday high.
 
Greece is negotiating restructuring terms with private creditors, although talks have yet to produced an announced agreement, which has markets on edge.
 
Athens has to strike a deal with creditors to restructure its debt if it wants to tap fresh bailout money and avoid defaulting on a EUR14.4 billion bond redemption coming due on March 20.
 
Meanwhile in the U.K. retail sales came in line with expectations, rising 0.6% in December.
 
The euro was down against the dollar and also against the yen, with EUR/USD falling 0.32% to 1.2928 and EUR/JPY falling 0.50% at 99.50.
 
Investors will keep a close eye on the Greek debt restructuring talks over the weekend and next week, the Federal Reserve Open Market Committee will meet to discuss the future of U.S. monetary policy.
 
Talk or even hints of loose policies in the U.S. such as quantitative easing, which are asset purchases from banks with freshly minted money, could move markets worldwide.
 




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