Investing.com – The euro surged to a 2-month high against the pound on Tuesday, after several strong euro zone bond auctions helped eased lingering fears over the region's sovereign debt issues.
EUR/GBP hit 0.8470 during European afternoon trade, the pair's highest since July 21; the pair subsequently consolidated at 0.8446, gaining 0.52%.
The pair was likely to find support at 0.8330, Monday's low and resistance at 0.8531, the high of July 20.
Earlier in the day, Ireland's National Management Treasury Agency said that it had raised EUR 1.5 billion in a fully subscribed auction of Government bonds. But borrowing costs rose amid concerns over the cost of bailing out the country's banking sector.
Meanwhile, Spanish and Greek debt auctions also attracted healthy demand. Greece sold EUR 390 million in 3-month bills at a yield of 3.98% compared with 4.05% in the last quarter.
The euro was also up against the U.S. dollar, with EUR/USD gaining 0.50% to hit 1.3127.
Earlier Tuesday, official data showed that U.K. public sector borrowing rose significantly more-than-expected in August.
EUR/GBP hit 0.8470 during European afternoon trade, the pair's highest since July 21; the pair subsequently consolidated at 0.8446, gaining 0.52%.
The pair was likely to find support at 0.8330, Monday's low and resistance at 0.8531, the high of July 20.
Earlier in the day, Ireland's National Management Treasury Agency said that it had raised EUR 1.5 billion in a fully subscribed auction of Government bonds. But borrowing costs rose amid concerns over the cost of bailing out the country's banking sector.
Meanwhile, Spanish and Greek debt auctions also attracted healthy demand. Greece sold EUR 390 million in 3-month bills at a yield of 3.98% compared with 4.05% in the last quarter.
The euro was also up against the U.S. dollar, with EUR/USD gaining 0.50% to hit 1.3127.
Earlier Tuesday, official data showed that U.K. public sector borrowing rose significantly more-than-expected in August.