Investing.com - The euro was lower against the pound on Monday, after the Group of 20 nations told European leaders that they must commit to enlarging the region’s debt firewall before seeking further assistance from outside to combat the crisis.
EUR/GBP hit 0.8447 during European morning trade, the session low; the pair subsequently consolidated at 0.8452, shedding 0.26%.
The pair was likely to find support at 0.8377, the low of February 22 and resistance at 0.8505, Friday’s high and an 11-week high.
The G-20 Group postponed a decision on increasing the lending capacity of the International Monetary Fund in order to tackle the debt crisis in the euro zone and said any decision on outside help will be conditional upon on European governments increasing the size of current bailout facilities.
Germany has remained opposed to enlarging the size of the European Stability Mechanism, the permanent euro zone bailout fund that is to become active this year.
Meanwhile, Germany’s parliament was to vote on Greece’s second bailout, which was already approved by euro zone finance ministers last week, later in the day.
Sentiment on the single currency was also hit after ratings agency Moody’s said earlier that while a second bailout for Greece was an important step forward, the risk of a default remained high.
The euro found some support as investors looked ahead to the European Central Bank's second liquidity boosting operation, set to take place on Wednesday, after the bank carried out a similar successful operation in December.
The euro was also down against the U.S. dollar and the yen, with EUR/USD sliding 0.36% to hit 1.3399 and EUR/JPY dropping 1.03% to hit 108.08.
Also Monday, Italy saw its short-term borrowing costs fall to the lowest level in 18 months, after selling EUR8.75 billion of six-month bills at a yield of 1.2%, down from 1.97% last month and EUR3.5 billion of nine-month bills, at an average yield of 1.29%.
EUR/GBP hit 0.8447 during European morning trade, the session low; the pair subsequently consolidated at 0.8452, shedding 0.26%.
The pair was likely to find support at 0.8377, the low of February 22 and resistance at 0.8505, Friday’s high and an 11-week high.
The G-20 Group postponed a decision on increasing the lending capacity of the International Monetary Fund in order to tackle the debt crisis in the euro zone and said any decision on outside help will be conditional upon on European governments increasing the size of current bailout facilities.
Germany has remained opposed to enlarging the size of the European Stability Mechanism, the permanent euro zone bailout fund that is to become active this year.
Meanwhile, Germany’s parliament was to vote on Greece’s second bailout, which was already approved by euro zone finance ministers last week, later in the day.
Sentiment on the single currency was also hit after ratings agency Moody’s said earlier that while a second bailout for Greece was an important step forward, the risk of a default remained high.
The euro found some support as investors looked ahead to the European Central Bank's second liquidity boosting operation, set to take place on Wednesday, after the bank carried out a similar successful operation in December.
The euro was also down against the U.S. dollar and the yen, with EUR/USD sliding 0.36% to hit 1.3399 and EUR/JPY dropping 1.03% to hit 108.08.
Also Monday, Italy saw its short-term borrowing costs fall to the lowest level in 18 months, after selling EUR8.75 billion of six-month bills at a yield of 1.2%, down from 1.97% last month and EUR3.5 billion of nine-month bills, at an average yield of 1.29%.