Forex - EUR/GBP higher amid Greece debt talk hopes

Published 01/23/2012, 05:04 AM
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Investing.com - The euro was higher against the pound on Monday, amid optimism ahead of a meeting of European Union finance ministers to discuss the terms of a proposed Greek debt restructuring deal later in the day.

EUR/GBP hit 0.8332 during European morning trade, the daily high; the pair subsequently consolidated at 0.8316, adding 0.16%.

The pair was likely to find support at 0.8261, the low of January 17 and resistance at 0.8353, the high of January 18.

On Sunday, Greece’s creditors said they had reached their maximum offer for a voluntary debt swop and said it was now up to the EU and the International Monetary Fund to agree on whether they can accept the deal.

The restructuring agreement is a precondition for Athens to receive its next tranche of bailout funds in order to avert a default when a EUR14.4 billion bond redemption comes due on March 20.

Elsewhere, the Bank of Spain said earlier it expects the country’s gross domestic product to contract by 1.5% in 2012, with a "modest recuperation" in 2013 of 0.2%.

In its January Economic Bulletin, the BoS said the macroeconomic scenario at present is due to a "significant contraction" of national demand, partially neutralized by an elevated net external balance.

Meanwhile, the pound remained under pressure amid speculation that the Bank of England may announce fresh monetary easing measures as soon as next month to stimulate growth.

Elsewhere, sterling was lower against the U.S. dollar with GBP/USD shedding 0.17%, to hit 1.5549.

Earlier in the session, trade was thin as financial markets remained closed in China, Hong Kong, South Korea, Taiwan and Singapore were closed to welcome in the Chinese Year of the Dragon.



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