Investing.com - The euro remained lower against the pound on Thursday, as concerns over Spain and Greece weighed on the single currency, while underlying sentiment on the pound remained strong despite weak U.K. manufacturing data for October.
EUR/GBP hit 0.8004 during European late morning trade, the pair’s lowest since October 25; the pair subsequently consolidated at 0.8012, shedding 0.28%.
The pair was likely to find support at 0.7995, the low of October 3 and resistance at 0.8040, the session high.
Sentiment on the single currency remained weak amid uncertainty over when Spain may request a bailout and whether Greece will secure the next tranche of its bailout funding.
Sterling remained supported after data showed that the U.K. manufacturing purchasing managers’ index fell to 47.5 in October from a reading of 48.4 in September, compared to expectations for a dip to 48.1.
The report showed that manufacturers cut production for the fourth month, while new orders fell at a faster rate than in September as export demand remained weak.
The data came after a report by U.K. mortgage lender Nationwide showed that house prices rose 0.6% in October, better than expectations for a 0.2% increase.
Demand for the pound continued to remain underpinned after government data last week showed that the U.K. economy emerged from recession in the third quarter, prompting market participants to trim back expectations for another round of easing by the Bank of England.
The euro was fractionally lower against the dollar, with EUR/USD dipping 0.06% to 1.2952, but pushed higher against the yen, with EUR/JPY rising 0.25% to 103.62.
Later in the day, the U.S. was to release the ADP report on nonfarm payrolls, as well as the weekly government report on initial jobless claims.
In addition, the Institute of Supply Management was to publish data on U.S. manufacturing activity.
EUR/GBP hit 0.8004 during European late morning trade, the pair’s lowest since October 25; the pair subsequently consolidated at 0.8012, shedding 0.28%.
The pair was likely to find support at 0.7995, the low of October 3 and resistance at 0.8040, the session high.
Sentiment on the single currency remained weak amid uncertainty over when Spain may request a bailout and whether Greece will secure the next tranche of its bailout funding.
Sterling remained supported after data showed that the U.K. manufacturing purchasing managers’ index fell to 47.5 in October from a reading of 48.4 in September, compared to expectations for a dip to 48.1.
The report showed that manufacturers cut production for the fourth month, while new orders fell at a faster rate than in September as export demand remained weak.
The data came after a report by U.K. mortgage lender Nationwide showed that house prices rose 0.6% in October, better than expectations for a 0.2% increase.
Demand for the pound continued to remain underpinned after government data last week showed that the U.K. economy emerged from recession in the third quarter, prompting market participants to trim back expectations for another round of easing by the Bank of England.
The euro was fractionally lower against the dollar, with EUR/USD dipping 0.06% to 1.2952, but pushed higher against the yen, with EUR/JPY rising 0.25% to 103.62.
Later in the day, the U.S. was to release the ADP report on nonfarm payrolls, as well as the weekly government report on initial jobless claims.
In addition, the Institute of Supply Management was to publish data on U.S. manufacturing activity.