Investing.com - The euro was higher against the pound on Wednesday, as renewed hopes for progress in tackling the debt crisis in the euro zone lifted market sentiment while demand for sterling waned after disappointing U.K. GDP data.
EUR/GBP hit 0.8396 during European morning trade, the pair’s highest since March 13; the pair subsequently consolidated at 0.8373, rising 0.30%.
The pair was likely to find support at 0.8335, the low of March 26 and resistance at 0.8398, the high of March 8.
The euro found support earlier after Italian Prime Minister Mario Monti said that the euro zone’s debt crisis is “almost over”.
Also Wednesday, official data confirmed that the French economy grew by 0.2% in the last three months of 2011, in line with preliminary estimates. The euro zone economy contracted by 0.3% in the fourth quarter.
Meanwhile, data showed that the U.K. economy contracted more-than-initially estimated in the final three months of 2011.
The Office for National Statistics said gross domestic product contracted at a seasonally adjusted rate of 0.3% during the fourth quarter, more than the preliminary estimate of a 0.2% contraction.
Annualized GDP rose at a rate of 0.5%, below expectations for growth of 0.7%.
The report showed that U.K. household incomes fell by 1.2% in 2011, the largest annual decline since 1977.
A separate report showed that the U.K.’s current account deficit narrowed to GBP8.5 billion in the fourth quarter, broadly in line with expectations.
Elsewhere, the pound was fractionally lower against the U.S. dollar with GBP/USD edging down 0.08%, to hit 1.5935.
Later in the day, the U.S. was to publish government data on durable goods orders, followed by a report on crude oil stockpiles.
EUR/GBP hit 0.8396 during European morning trade, the pair’s highest since March 13; the pair subsequently consolidated at 0.8373, rising 0.30%.
The pair was likely to find support at 0.8335, the low of March 26 and resistance at 0.8398, the high of March 8.
The euro found support earlier after Italian Prime Minister Mario Monti said that the euro zone’s debt crisis is “almost over”.
Also Wednesday, official data confirmed that the French economy grew by 0.2% in the last three months of 2011, in line with preliminary estimates. The euro zone economy contracted by 0.3% in the fourth quarter.
Meanwhile, data showed that the U.K. economy contracted more-than-initially estimated in the final three months of 2011.
The Office for National Statistics said gross domestic product contracted at a seasonally adjusted rate of 0.3% during the fourth quarter, more than the preliminary estimate of a 0.2% contraction.
Annualized GDP rose at a rate of 0.5%, below expectations for growth of 0.7%.
The report showed that U.K. household incomes fell by 1.2% in 2011, the largest annual decline since 1977.
A separate report showed that the U.K.’s current account deficit narrowed to GBP8.5 billion in the fourth quarter, broadly in line with expectations.
Elsewhere, the pound was fractionally lower against the U.S. dollar with GBP/USD edging down 0.08%, to hit 1.5935.
Later in the day, the U.S. was to publish government data on durable goods orders, followed by a report on crude oil stockpiles.