Investing.com - The euro pushed higher against the broadly weaker pound on Wednesday, but gains were limited as worries over the euro zone’s debt crisis kept the single currency under pressure.
EUR/GBP hit 0.8272 during European morning trade, the session high; the pair subsequently consolidated at 0.8262, ticking up 0.13%.
The pair was likely to find support at 0.8221, Monday’s low and a 16-month low and resistance at 0.8287, Tuesday’s high.
Sentiment on the single currency remained fragile as investors looked towards the European Central Bank’s policy setting meeting on Thursday, as well as government debt auctions by troubled euro zone states, Spain and Italy.
The yield on 10-year Italian government bonds remained lodged above the 7% threshold seen as unsustainable, at 7.06%, while the yield on Spanish 10-year bonds was at 5.44%.
The ECB was expected to keep rates unchanged at 1% at its meeting on Thursday, and was expected to reiterate that governments in the euro zone must step up efforts to tackle the region’s debt crisis.
In the U.K., official data showed that the goods trade deficit expanded more-than-expected in November, as exports declined and imports of oil and chemicals rose to record highs.
The goods trade deficit widened to GBP8.6 billion, compared with the deficit of GBP7.9 billion in October.
Analysts had expected the goods trade deficit to expand to GBP8.3 billion in November.
Meanwhile, the euro was lower against the U.S. dollar, with EUR/USD slipping 0.15% to hit 1.2757.
Later Wednesday, German Chancellor Angela Merkel was to meet with Italian Prime Minister Mario Monti, to discuss plans to shore up Italy’s finances ahead of a European Union summit on January 30.
EUR/GBP hit 0.8272 during European morning trade, the session high; the pair subsequently consolidated at 0.8262, ticking up 0.13%.
The pair was likely to find support at 0.8221, Monday’s low and a 16-month low and resistance at 0.8287, Tuesday’s high.
Sentiment on the single currency remained fragile as investors looked towards the European Central Bank’s policy setting meeting on Thursday, as well as government debt auctions by troubled euro zone states, Spain and Italy.
The yield on 10-year Italian government bonds remained lodged above the 7% threshold seen as unsustainable, at 7.06%, while the yield on Spanish 10-year bonds was at 5.44%.
The ECB was expected to keep rates unchanged at 1% at its meeting on Thursday, and was expected to reiterate that governments in the euro zone must step up efforts to tackle the region’s debt crisis.
In the U.K., official data showed that the goods trade deficit expanded more-than-expected in November, as exports declined and imports of oil and chemicals rose to record highs.
The goods trade deficit widened to GBP8.6 billion, compared with the deficit of GBP7.9 billion in October.
Analysts had expected the goods trade deficit to expand to GBP8.3 billion in November.
Meanwhile, the euro was lower against the U.S. dollar, with EUR/USD slipping 0.15% to hit 1.2757.
Later Wednesday, German Chancellor Angela Merkel was to meet with Italian Prime Minister Mario Monti, to discuss plans to shore up Italy’s finances ahead of a European Union summit on January 30.