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Forex - EUR/GBP slips after U.K. manufacturing data

Published 11/08/2011, 05:16 AM
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EUR/GBP
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Investing.com - The euro slipped against the pound on Tuesday, after upbeat U.K. manufacturing data and amid ongoing concerns over Italy's current political turmoil.

EUR/GBP hit 0.8558 during European morning trade, the pair's lowest since November 1; the pair subsequently consolidated at 0.8567, shedding 0.14%.

The pair was likely to find support at 0.8523, the low of October 4 and resistance at 0.8642, the high of November 3.

The pound found support after official data showed that U.K. manufacturing production rose slightly more-than-expected in September, increasing 0.2% after a 0.3% decline the previous month, while industrial output was unexpectedly flat.

Analysts had expected manufacturing production to rise 0.1% in September.

Earlier Tuesday, industry data showed that U.K. retail sales fell 0.6% in October, after a 0.3% rise the previous month.

Meanwhile, the single currency remained vulnerable ahead of a crucial vote in Italy on public finances amid growing pressure for Prime Minister Silvio Berlusconi to step down and allow a new government to steer the country out of the euro zone's debt crisis.

Greece was to announce the new head of an interim government later Tuesday, amid ongoing efforts to avoid a potential default.

The pound was also up against the U.S. dollar with GBP/USD inching up 0.08%, to trade at 1.6068.

Also Tuesday, finance ministers from the European Union member states were to meet in Brussels to discuss the region’s ongoing financial crisis.

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