Investing.com – The euro slipped against the pound on Tuesday, after comments by Spain’s economy minister dampened expectations for radical actions by European leaders to tackle the financial crisis in the single currency bloc.
EUR/GBP hit 0.8676 during European morning trade, the daily low; the pair subsequently consolidated at 0.8686, slipping 0.08%.
The pair was likely to find support at 0.8651, Monday’s low and an eight-day low and resistance at 0.8746, Monday’s high.
Speaking earlier, Spain's Economy Minister Elena Salgado said plans to enlarge the euro zone bailout fund, the European Financial Stability Facility, to EUR2 trillion were not on the table.
Later in the week, several euro member states were to vote on expanding the role of the EFSF. The measures have to be passed by all of the currency bloc's governments before steps to expand its role can be implemented.
The euro was also hit by mounting expectations that the European Central Bank may cut interest rates to support growth in the region, after an ECB official said Monday that cuts could not be ruled out.
The euro was also lower against the U.S. dollar, with EUR/USD sliding 0.22% to hit 1.3502.
Also Tuesday, Bank of England policymaker Adam Posen said the euro zone would overcome the debt crisis but warned that a solution involving stricter fiscal rules for euro zone nations would result in lower growth.
EUR/GBP hit 0.8676 during European morning trade, the daily low; the pair subsequently consolidated at 0.8686, slipping 0.08%.
The pair was likely to find support at 0.8651, Monday’s low and an eight-day low and resistance at 0.8746, Monday’s high.
Speaking earlier, Spain's Economy Minister Elena Salgado said plans to enlarge the euro zone bailout fund, the European Financial Stability Facility, to EUR2 trillion were not on the table.
Later in the week, several euro member states were to vote on expanding the role of the EFSF. The measures have to be passed by all of the currency bloc's governments before steps to expand its role can be implemented.
The euro was also hit by mounting expectations that the European Central Bank may cut interest rates to support growth in the region, after an ECB official said Monday that cuts could not be ruled out.
The euro was also lower against the U.S. dollar, with EUR/USD sliding 0.22% to hit 1.3502.
Also Tuesday, Bank of England policymaker Adam Posen said the euro zone would overcome the debt crisis but warned that a solution involving stricter fiscal rules for euro zone nations would result in lower growth.