Investing.com - The euro rose to a two-month high against the pound on Wednesday, after the minutes of the Bank of England’s most recent meeting showed that policymakers considered a larger increase of the bank’s asset purchase program this month.
EUR/GBP hit 0.8434 during European morning trade, the pair’s highest since December 13; the pair subsequently consolidated at 0.8417, gaining 0.38%.
The pair was likely to find support at 0.8377, the session low and resistance at 0.8480, the high of December 13.
The minutes of the central bank’s February meeting showed that two policymakers supported a GBP75 billion increase, while the remainder of the monetary policy committee voted in favor of a GBP50 billion increase to GBP325 billion.
The majority of policymakers believed that an increase of more than GBP50 billion "risked sending a signal that the Committee thought the economic situation was weaker than it was."
The euro found support after official data showed that new industrial orders across the euro zone increased by 1.8% in December, erasing the previous month’s 1.1% drop.
But separate reports showed that manufacturing activity in the euro zone improved less-than-expected in February, remaining in contraction territory for the seventh consecutive month, while service sector activity contracted unexpectedly.
Data from Germany and France showed modest growth in business activity, albeit at a slower pace than in January, but activity in peripheral euro zone nation’s showed a steep decline this month.
Meanwhile, market sentiment remained subdued amid sustained uncertainty over whether Greece can follow through with fiscal reforms after securing a second bailout from its international creditors on Tuesday.
The euro was steady against the U.S. dollar, with EUR/USD inching up 0.02% to hit 1.3235.
Later in the day, the U.S. was to publish industry data on existing home sales.
EUR/GBP hit 0.8434 during European morning trade, the pair’s highest since December 13; the pair subsequently consolidated at 0.8417, gaining 0.38%.
The pair was likely to find support at 0.8377, the session low and resistance at 0.8480, the high of December 13.
The minutes of the central bank’s February meeting showed that two policymakers supported a GBP75 billion increase, while the remainder of the monetary policy committee voted in favor of a GBP50 billion increase to GBP325 billion.
The majority of policymakers believed that an increase of more than GBP50 billion "risked sending a signal that the Committee thought the economic situation was weaker than it was."
The euro found support after official data showed that new industrial orders across the euro zone increased by 1.8% in December, erasing the previous month’s 1.1% drop.
But separate reports showed that manufacturing activity in the euro zone improved less-than-expected in February, remaining in contraction territory for the seventh consecutive month, while service sector activity contracted unexpectedly.
Data from Germany and France showed modest growth in business activity, albeit at a slower pace than in January, but activity in peripheral euro zone nation’s showed a steep decline this month.
Meanwhile, market sentiment remained subdued amid sustained uncertainty over whether Greece can follow through with fiscal reforms after securing a second bailout from its international creditors on Tuesday.
The euro was steady against the U.S. dollar, with EUR/USD inching up 0.02% to hit 1.3235.
Later in the day, the U.S. was to publish industry data on existing home sales.