Investing.com – The euro surged to hit a fresh 4-day high against the pound on Monday, after the European Commission raised its growth forecast for the euro zone for 2010.
EUR/GBP hit 0.8335 during European afternoon trade, the pair’s highest since September 7; the pair subsequently consolidated at 0.8333, gaining 0.98%.
The pair was likely to find support at 0.8211, last Friday’s low, and resistance at 0.8389, the high of September 6.
Earlier in the day, the EC said it now expected the euro zone economy to expand by 1.7%, up from a previous estimate of 0.9%, but warned that growth is likely to slow in the second half as the world economy hits a "soft patch".
Commenting on the report, Olli Rehn, the EU's economic and monetary affairs commissioner said "This gives reason for cautious optimism, despite a more uncertain global environment."
The euro was also up against the U.S. dollar, with EUR/USD gaining 1.26% to hit 1.2835.
Also Monday, industry data showed that demand for mortgages in the U.K. remained weak in July, traditionally a strong month.
EUR/GBP hit 0.8335 during European afternoon trade, the pair’s highest since September 7; the pair subsequently consolidated at 0.8333, gaining 0.98%.
The pair was likely to find support at 0.8211, last Friday’s low, and resistance at 0.8389, the high of September 6.
Earlier in the day, the EC said it now expected the euro zone economy to expand by 1.7%, up from a previous estimate of 0.9%, but warned that growth is likely to slow in the second half as the world economy hits a "soft patch".
Commenting on the report, Olli Rehn, the EU's economic and monetary affairs commissioner said "This gives reason for cautious optimism, despite a more uncertain global environment."
The euro was also up against the U.S. dollar, with EUR/USD gaining 1.26% to hit 1.2835.
Also Monday, industry data showed that demand for mortgages in the U.K. remained weak in July, traditionally a strong month.