Investing.com – The euro extended early losses against the pound on Wednesday, falling to a four-day low, following the release of upbeat U.K. data on services sector growth and retail sales.
EUR/GBP hit 0.8753 during European morning trade, the pair’s lowest since last Thursday; the pair subsequently consolidated at 0.8769, shedding 0.51%.
The pair was likely to find support at 0.8662, last Thursday’s low and resistance at 0.8835, Tuesday’s high and a four-month high.
Earlier in the day, a survey by the Confederation of British Industry showed that retail sales growth picked up unexpectedly in March, but the underlying trend for sales remained weak.
The CBI distributive trades survey's sales balance rose to 15 in March from 6 in February. Analysts had forecast a reading of zero.
A separate report showed that Britain’s services companies grew the most in almost nine years in January as hotels and restaurants recovered after the coldest December in a century.
The Office for National Statistics said services, which account for three quarters of the economy, rose 1.3% from the previous month, when they shrank 1.1%.
However, the single currency remained well supported after European Central Bank Governing Council member Jozef Makuch, said Tuesday that the bank was "highly" likely to raise its main interest rate from the current record low level of 1.0% next month.
The pound was also higher against the U.S. dollar, with GBP/USD rising 0.28% to hit 1.6055.
Also Wednesday, the U.K.’s National Statistics Office said that Chancellor of the Exchequer George Osborne’s budget for the coming fiscal year will add 0.29% to consumer price inflation, mainly due to an increase in taxation on cigarettes and alcohol.
EUR/GBP hit 0.8753 during European morning trade, the pair’s lowest since last Thursday; the pair subsequently consolidated at 0.8769, shedding 0.51%.
The pair was likely to find support at 0.8662, last Thursday’s low and resistance at 0.8835, Tuesday’s high and a four-month high.
Earlier in the day, a survey by the Confederation of British Industry showed that retail sales growth picked up unexpectedly in March, but the underlying trend for sales remained weak.
The CBI distributive trades survey's sales balance rose to 15 in March from 6 in February. Analysts had forecast a reading of zero.
A separate report showed that Britain’s services companies grew the most in almost nine years in January as hotels and restaurants recovered after the coldest December in a century.
The Office for National Statistics said services, which account for three quarters of the economy, rose 1.3% from the previous month, when they shrank 1.1%.
However, the single currency remained well supported after European Central Bank Governing Council member Jozef Makuch, said Tuesday that the bank was "highly" likely to raise its main interest rate from the current record low level of 1.0% next month.
The pound was also higher against the U.S. dollar, with GBP/USD rising 0.28% to hit 1.6055.
Also Wednesday, the U.K.’s National Statistics Office said that Chancellor of the Exchequer George Osborne’s budget for the coming fiscal year will add 0.29% to consumer price inflation, mainly due to an increase in taxation on cigarettes and alcohol.