Investing.com - The euro was higher against the pound on Monday, as the approval of new austerity measures by Greece’s parliament eased concerns over a potential sovereign debt default, supporting demand for the single currency.
EUR/GBP hit 0.8402 during European morning trade, the daily high; the pair subsequently consolidated at 0.8396, rising 0.24%.
The pair was likely to find support at 0.350, the low of January 30 and resistance at 0.8424, the high of December 15.
The euro found support after Greece’s parliament approved on Sunday a set of austerity measures needed to secure a second bailout package.
The measures include cuts in private-sector wages, 15,000 public-sector job cuts and a further EUR3 billion in government-spending cuts this year alone.
However, Greece must still find a further EUR325 million of spending cuts and give binding assurances the plan will be implemented before Wednesday when euro zone finance ministers meet to decide on a new EUR130 billion bailout.
Meanwhile, Germany Finance Minister Wolfgang Schaeuble said in an interview with a German newspaper that Greek promises on austerity measures are no longer good enough because so many vows have been broken.
The single currency was also higher against the U.S. dollar with GBP/USD adding 0.24%, to hit 1.5794.
Investors were also eyeing a slew of debt auctions later in the week by Italy, Spain and France, as the sales will be considered as a gauge of investor confidence in the euro zone high-yielding sovereign debts.
EUR/GBP hit 0.8402 during European morning trade, the daily high; the pair subsequently consolidated at 0.8396, rising 0.24%.
The pair was likely to find support at 0.350, the low of January 30 and resistance at 0.8424, the high of December 15.
The euro found support after Greece’s parliament approved on Sunday a set of austerity measures needed to secure a second bailout package.
The measures include cuts in private-sector wages, 15,000 public-sector job cuts and a further EUR3 billion in government-spending cuts this year alone.
However, Greece must still find a further EUR325 million of spending cuts and give binding assurances the plan will be implemented before Wednesday when euro zone finance ministers meet to decide on a new EUR130 billion bailout.
Meanwhile, Germany Finance Minister Wolfgang Schaeuble said in an interview with a German newspaper that Greek promises on austerity measures are no longer good enough because so many vows have been broken.
The single currency was also higher against the U.S. dollar with GBP/USD adding 0.24%, to hit 1.5794.
Investors were also eyeing a slew of debt auctions later in the week by Italy, Spain and France, as the sales will be considered as a gauge of investor confidence in the euro zone high-yielding sovereign debts.