Investing.com - The euro was higher against the pound on Tuesday, but gains were expected to remain limited as investors were cautious after the release of mixed euro zone economic data and amid ongoing uncertainty over whether Spain will ask for a sovereign bailout.
EUR/GBP hit 0.8086 during European late morning trade, the pair's highest since October 12; the pair subsequently consolidated at 0.8085, rising 0.33%.
The pair was likely to find support at 0.8040, Monday's low and resistance at 0.8102, the high of September 17.
Official data showed that consumer price inflation in the euro zone slowed to 2.6% in September, down from a preliminary estimate of 2.7%.
Separately, the ZEW Centre for Economic Research said that its index of German economic sentiment improved to minus 11.5 in October from September’s reading of minus 18.2. Economists had forecast a reading of minus 15.0 this month.
Investors were looking ahead to Thursday's European Union summit amid ongoing speculation over whether Spain will formally request a bailout from its euro zone partners in the coming weeks.
A bailout request would trigger a bond buying program by the European Central Bank, aimed at lowering peripheral euro zone borrowing costs.
On Monday, Greek government officials indicated that an agreement with international creditors on deficit reductions is unlikely to be reached before the summit.
In the U.K., official data showed that the annualized rate of CPI dropped to 2.2% in September, the lowest since November 2009, down from 2.5% in August.
The slowdown in inflation will give the Bank of England more leeway to ease monetary policy further, in order to bolster growth in the recession hit economy.
Elsewhere, the euro was sharply higher against the U.S. dollar with EUR/USD climbing 0.49%, to hit 1.3012.
Later in the day, the U.S. was to release government data on consumer price inflation and industrial production.
EUR/GBP hit 0.8086 during European late morning trade, the pair's highest since October 12; the pair subsequently consolidated at 0.8085, rising 0.33%.
The pair was likely to find support at 0.8040, Monday's low and resistance at 0.8102, the high of September 17.
Official data showed that consumer price inflation in the euro zone slowed to 2.6% in September, down from a preliminary estimate of 2.7%.
Separately, the ZEW Centre for Economic Research said that its index of German economic sentiment improved to minus 11.5 in October from September’s reading of minus 18.2. Economists had forecast a reading of minus 15.0 this month.
Investors were looking ahead to Thursday's European Union summit amid ongoing speculation over whether Spain will formally request a bailout from its euro zone partners in the coming weeks.
A bailout request would trigger a bond buying program by the European Central Bank, aimed at lowering peripheral euro zone borrowing costs.
On Monday, Greek government officials indicated that an agreement with international creditors on deficit reductions is unlikely to be reached before the summit.
In the U.K., official data showed that the annualized rate of CPI dropped to 2.2% in September, the lowest since November 2009, down from 2.5% in August.
The slowdown in inflation will give the Bank of England more leeway to ease monetary policy further, in order to bolster growth in the recession hit economy.
Elsewhere, the euro was sharply higher against the U.S. dollar with EUR/USD climbing 0.49%, to hit 1.3012.
Later in the day, the U.S. was to release government data on consumer price inflation and industrial production.