Investing.com – The euro was up against the pound on Monday, jumping to the highest level in five months as the single currency was boosted by the view that the European Central Bank was likely to raise interest rates next month.
EUR/GBP hit 0.8819 during European afternoon trade, the pair’s highest since October 26, 2010; the pair subsequently consolidated at 0.8794, gaining 0.13%.
The pair was likely to find support at 0.8662, last Thursday’s low and resistance at 0.8882, the high of October 26, 2010.
ECB governing board member Ewald Nowotny said on Sunday that the central bank wanted to move towards a more "normal" monetary policy despite recent events in Japan.
ECB President Jean-Claude Trichet was to speak at the Academy of Sciences, in Paris later in the day. Markets expected him to reiterate his hawkish stance towards inflation.
Meanwhile, markets pared back expectations for a near-term rate hike by the Bank of England, after the minutes of the central bank’s most recent policy setting meeting showed the bank saw "merit in waiting" to examine the effect of higher oil prices, dampening speculation over an interest rate hike by the bank in the coming months.
Elsewhere, the euro was down against the U.S. dollar, with EUR/USD easing down 0.05% to hit 1.4078.
Earlier in the day, a report from the U.S. Bureau of Economic Analysis showed that U.S. consumer spending rose more-than-expected in February, climbing by a seasonally adjusted 0.7%, surpassing expectations of a 0.5% gain.
The report also showed that personal income rose by 0.3%, while the core personal consumption expenditure index rose in line with expectations, adding 0.2%.
EUR/GBP hit 0.8819 during European afternoon trade, the pair’s highest since October 26, 2010; the pair subsequently consolidated at 0.8794, gaining 0.13%.
The pair was likely to find support at 0.8662, last Thursday’s low and resistance at 0.8882, the high of October 26, 2010.
ECB governing board member Ewald Nowotny said on Sunday that the central bank wanted to move towards a more "normal" monetary policy despite recent events in Japan.
ECB President Jean-Claude Trichet was to speak at the Academy of Sciences, in Paris later in the day. Markets expected him to reiterate his hawkish stance towards inflation.
Meanwhile, markets pared back expectations for a near-term rate hike by the Bank of England, after the minutes of the central bank’s most recent policy setting meeting showed the bank saw "merit in waiting" to examine the effect of higher oil prices, dampening speculation over an interest rate hike by the bank in the coming months.
Elsewhere, the euro was down against the U.S. dollar, with EUR/USD easing down 0.05% to hit 1.4078.
Earlier in the day, a report from the U.S. Bureau of Economic Analysis showed that U.S. consumer spending rose more-than-expected in February, climbing by a seasonally adjusted 0.7%, surpassing expectations of a 0.5% gain.
The report also showed that personal income rose by 0.3%, while the core personal consumption expenditure index rose in line with expectations, adding 0.2%.