Investing.com – The euro was trading in a tight range against the pound on Monday, as markets mulled the implications of Greece’s credit event ruling ahead of a meeting of euro zone finance ministers later in the day.
EUR/GBP hit 0.8380 during European morning trade, the session high; the pair subsequently consolidated at 0.8370, dipping 0.01%
The pair was likely to find short-term support at 0.8342, last Thursday’s low and resistance at 0.8398, Thursday’s high and a six-day high.
On Friday, the International Swaps and Derivatives Association ruled that Greece’s debt swap with private creditors constituted a “credit event”, which would activate credit-default swaps, designed to protect investors against losses on Greek sovereign debt.
Trade remained subdued as ongoing concerns over Greece overshadowed Friday’s strong U.S. employment data.
The Department of Labor said the U.S. economy added 227,000 jobs in February, beating expectations for a 210,000 gain. The unemployment rate held steady at a three year low of 8.3%.
The upbeat data continued to support the dollar as it dampened expectations for a fresh round of asset purchases by the Federal Reserve to help stimulate economic growth.
The euro was fractionally higher against the U.S. dollar but slipped against the yen, with EUR/USD inching up 0.02% to hit 1.3121 and EUR/JPY shedding 0.28% to hit 107.92.
Later in the day, euro zone finance ministers were to hold talks in Brussels, to give their final approval to a EUR130 billion bailout for Greece.
The ministers were also likely to discuss Spain, after Prime Minister Mariano Rajoy announced earlier this month that the country would cut its deficit to 5.8% of gross domestic product, instead of the planned 4.4% in 2012.
EUR/GBP hit 0.8380 during European morning trade, the session high; the pair subsequently consolidated at 0.8370, dipping 0.01%
The pair was likely to find short-term support at 0.8342, last Thursday’s low and resistance at 0.8398, Thursday’s high and a six-day high.
On Friday, the International Swaps and Derivatives Association ruled that Greece’s debt swap with private creditors constituted a “credit event”, which would activate credit-default swaps, designed to protect investors against losses on Greek sovereign debt.
Trade remained subdued as ongoing concerns over Greece overshadowed Friday’s strong U.S. employment data.
The Department of Labor said the U.S. economy added 227,000 jobs in February, beating expectations for a 210,000 gain. The unemployment rate held steady at a three year low of 8.3%.
The upbeat data continued to support the dollar as it dampened expectations for a fresh round of asset purchases by the Federal Reserve to help stimulate economic growth.
The euro was fractionally higher against the U.S. dollar but slipped against the yen, with EUR/USD inching up 0.02% to hit 1.3121 and EUR/JPY shedding 0.28% to hit 107.92.
Later in the day, euro zone finance ministers were to hold talks in Brussels, to give their final approval to a EUR130 billion bailout for Greece.
The ministers were also likely to discuss Spain, after Prime Minister Mariano Rajoy announced earlier this month that the country would cut its deficit to 5.8% of gross domestic product, instead of the planned 4.4% in 2012.