Investing.com – The euro erased early gains against the pound on Tuesday, falling to hit a fresh daily low, amid lingering fears over the strength of the global economic recovery.
EUR/GBP hit 0.8328 during European afternoon trade, a daily low; the pair subsequently consolidated at 0.8334, shedding 0.18%.
The pair was likely to find support at 0.8211, the low of September 10, and resistance at 0.8389, the high of September 6.
Earlier in the day, the ZEW Centre for Economic Research said that its index of German economic sentiment fell to -4.3 in September, after rising to 14 in August.
Analysts had expected the index to decline to 10.7 in September.
On the index a level above 0.0 indicates optimism; a level below 0.0 indicates pessimism.
Commenting on the report, ZEW President Prof. Wolfgang Franz said, " Financial experts put more weight on risks…for example the slowdown of the US growth and the yet unresolved problems in the euro zone”.
He added, "Nevertheless, the risk of a double dip remains low for Germany".
The euro was also down against the U.S. dollar, with EUR/USD shedding 0.34% to hit 1.2838.
Earlier Tuesday, official data showed that consumer price inflation in the U.K. was unchanged in August, holding steady at 3.1%.
EUR/GBP hit 0.8328 during European afternoon trade, a daily low; the pair subsequently consolidated at 0.8334, shedding 0.18%.
The pair was likely to find support at 0.8211, the low of September 10, and resistance at 0.8389, the high of September 6.
Earlier in the day, the ZEW Centre for Economic Research said that its index of German economic sentiment fell to -4.3 in September, after rising to 14 in August.
Analysts had expected the index to decline to 10.7 in September.
On the index a level above 0.0 indicates optimism; a level below 0.0 indicates pessimism.
Commenting on the report, ZEW President Prof. Wolfgang Franz said, " Financial experts put more weight on risks…for example the slowdown of the US growth and the yet unresolved problems in the euro zone”.
He added, "Nevertheless, the risk of a double dip remains low for Germany".
The euro was also down against the U.S. dollar, with EUR/USD shedding 0.34% to hit 1.2838.
Earlier Tuesday, official data showed that consumer price inflation in the U.K. was unchanged in August, holding steady at 3.1%.