Investing.com - The euro ticked higher against the pound on Tuesday, but gains were limited as sentiment on the single currency remained fragile as concerns over the ongoing sovereign debt crisis in the euro zone weighed.
EUR/GBP hit 0.8278 during European morning trade, the daily high; the pair subsequently consolidated at 0.8275, gaining 0.23%.
The pair was likely to find support at 0.8221, Monday’s low and a 16-month low and short-term resistance at 0.8288, last Thursday’s high.
The euro found support ahead of a meeting between German Chancellor Angela Merkel and International Monetary Fund President Christine Lagarde later in the day to discuss Greece’s bailout.
Following talks on Monday with French President Nicolas Sarkozy, Merkel warned Greece that it would not be possible to give further financial aid without swift progress on its second rescue package, including a voluntary write-down on Greek debt held by private creditors.
Merkel also said she was hopeful that European leaders could sign off on a fiscal pact aimed at resolving the region’s two-year old debt crisis by the end of January or early February.
In the U.K., industry data showed that house showed prices fell at a marginally slower pace in the three months to December, with prices expected to continue falling in the coming months.
A separate report showed that U.K. retail sales jumped in December, but retailers expect another difficult year in 2012.
The pound was fractionally higher against the U.S. dollar, with GBP/USD inching up 0.04% to hit 1.5464.
Also Tuesday, investors were keeping a close eye on the borrowing costs of troubled euro zone states Spain and Italy, ahead of government debt auctions later in the week.
The yield on 10-year Italian government bonds remained above the 7% threshold seen as unsustainable at 7.18%, while the yield on Spanish 10-year bonds was at 5.6%.
EUR/GBP hit 0.8278 during European morning trade, the daily high; the pair subsequently consolidated at 0.8275, gaining 0.23%.
The pair was likely to find support at 0.8221, Monday’s low and a 16-month low and short-term resistance at 0.8288, last Thursday’s high.
The euro found support ahead of a meeting between German Chancellor Angela Merkel and International Monetary Fund President Christine Lagarde later in the day to discuss Greece’s bailout.
Following talks on Monday with French President Nicolas Sarkozy, Merkel warned Greece that it would not be possible to give further financial aid without swift progress on its second rescue package, including a voluntary write-down on Greek debt held by private creditors.
Merkel also said she was hopeful that European leaders could sign off on a fiscal pact aimed at resolving the region’s two-year old debt crisis by the end of January or early February.
In the U.K., industry data showed that house showed prices fell at a marginally slower pace in the three months to December, with prices expected to continue falling in the coming months.
A separate report showed that U.K. retail sales jumped in December, but retailers expect another difficult year in 2012.
The pound was fractionally higher against the U.S. dollar, with GBP/USD inching up 0.04% to hit 1.5464.
Also Tuesday, investors were keeping a close eye on the borrowing costs of troubled euro zone states Spain and Italy, ahead of government debt auctions later in the week.
The yield on 10-year Italian government bonds remained above the 7% threshold seen as unsustainable at 7.18%, while the yield on Spanish 10-year bonds was at 5.6%.