Investing.com – The euro surged to a fresh 20-week high against the pound on Wednesday, amid concerns that further monetary easing may be required to support the U.K. economy.
EUR/GBP hit 0.8752 during European afternoon trade, the pair’s highest since May 21; the pair subsequently consolidated at 0.8743, gaining 0.42%.
The pair was likely to find support at 0.8625, Tuesday’s low and short-term resistance at 0.8771, the high of May 21.
The Bank of England was expected to hold monetary policy steady after its meeting on Thursday but the bank’s monetary policy committee is split three ways for the first time since November, with members variously supporting both tighter and looser policy due to uncertainty over the economic outlook.
The euro was also up against the U.S. dollar, with EUR/USD gaining 0.33% to hit 1.3885.
Earlier in the day, official data showed that German factory orders rose more-than-expected in September.
EUR/GBP hit 0.8752 during European afternoon trade, the pair’s highest since May 21; the pair subsequently consolidated at 0.8743, gaining 0.42%.
The pair was likely to find support at 0.8625, Tuesday’s low and short-term resistance at 0.8771, the high of May 21.
The Bank of England was expected to hold monetary policy steady after its meeting on Thursday but the bank’s monetary policy committee is split three ways for the first time since November, with members variously supporting both tighter and looser policy due to uncertainty over the economic outlook.
The euro was also up against the U.S. dollar, with EUR/USD gaining 0.33% to hit 1.3885.
Earlier in the day, official data showed that German factory orders rose more-than-expected in September.