Investing.com - The euro rose to a three-day high against the pound on Wednesday, bolstered by speculation that the International Monetary Fund is looking at ways to expand its lending resources to USD1 trillion, from the existing USD385 billion.
EUR/GBP hit 0.8354 during European morning trade, the pair’s highest since January 13; the pair subsequently consolidated at 0.8346, gaining 0.48%.
The pair was likely to find support at 0.8261, Tuesday’s low and resistance at 0.8376, the high of January 13.
The euro added to gains after media reports that the IMF wants to reach an agreement on enlarging its lending capacity at a meeting of the Group of 20 nations due to take place at the end of next month.
The reports came after IMF Managing Director Christine Lagarde said Tuesday her staff were examining options to enlarge the lending capacity of the fund.
The euro trimmed gains against the pound earlier, after Fitch’s warned that Italy could face a two-notch downgrade.
The comments came after the ratings agency, which currently holds Italy at an A+ rating, said last week that there was a “significant” chance that Italy would be downgraded by the end of January.
In the U.K., official data showed that the unemployment rate unexpectedly rose to a 17-year high of 8.4% in December, from 8.3% the previous month.
The report also showed that the claimant count rose by a seasonally adjusted 1,200 in December, significantly below expectations for an increase of 8,000, indicating that the downturn in the labor market may be moderating.
Elsewhere, the pound was higher against the U.S. dollar, with GBP/USD adding 0.23% to hit 1.5368.
Later in the day, Greece’s government was due to resume talks with its bond holders to discuss a voluntary write-down on Greece’s sovereign debt, after talks broke down on Friday, amid disagreements over how much money investors will lose by swapping their bonds.
Meanwhile, the U.S. was to release official data on producer price inflation and industrial production.
EUR/GBP hit 0.8354 during European morning trade, the pair’s highest since January 13; the pair subsequently consolidated at 0.8346, gaining 0.48%.
The pair was likely to find support at 0.8261, Tuesday’s low and resistance at 0.8376, the high of January 13.
The euro added to gains after media reports that the IMF wants to reach an agreement on enlarging its lending capacity at a meeting of the Group of 20 nations due to take place at the end of next month.
The reports came after IMF Managing Director Christine Lagarde said Tuesday her staff were examining options to enlarge the lending capacity of the fund.
The euro trimmed gains against the pound earlier, after Fitch’s warned that Italy could face a two-notch downgrade.
The comments came after the ratings agency, which currently holds Italy at an A+ rating, said last week that there was a “significant” chance that Italy would be downgraded by the end of January.
In the U.K., official data showed that the unemployment rate unexpectedly rose to a 17-year high of 8.4% in December, from 8.3% the previous month.
The report also showed that the claimant count rose by a seasonally adjusted 1,200 in December, significantly below expectations for an increase of 8,000, indicating that the downturn in the labor market may be moderating.
Elsewhere, the pound was higher against the U.S. dollar, with GBP/USD adding 0.23% to hit 1.5368.
Later in the day, Greece’s government was due to resume talks with its bond holders to discuss a voluntary write-down on Greece’s sovereign debt, after talks broke down on Friday, amid disagreements over how much money investors will lose by swapping their bonds.
Meanwhile, the U.S. was to release official data on producer price inflation and industrial production.