Investing.com - The euro trimmed losses against the pound on Wednesday, pulling back from an almost one-month low after disappointing U.K. employment data but gains were limited following mixed euro zone economic data.
EUR/GBP pulled away from 0.8296, the pair’s lowest since February 17, to hit 0.8320 during European morning trade, still down 0.11% on the day.
The pair was likely to find support at 0.8288, the low of February 17 and resistance at 0.8398, the high of March 8.
The pound came under pressure after official data showed that the number of people claiming unemployment benefits in the U.K. rose more-than-expected in February, while the unemployment rate held steady at 8.4%, the highest level since 1995.
The U.K. Office for National Statistics said that the claimant count rose by a seasonally adjusted 7,200 in February, above expectations for an increase of 6,000.
In the euro zone, a report showed that industrial production across the region rose in January for the first time in three months, while the annualized rate of consumer price inflation was unchanged in February and remained above the European Central Bank’s target.
Eurostat said industrial production was up 0.2% in January, below expectations for an increase of 0.8%.
In a separate report, Eurostat said consumer prices rose by 0.5% last month and were up 2.7% year-over-year. The annual rate of inflation was in line with preliminary estimates, while the figure for January was revised up to 2.7% from 2.6%.
The euro remained lower against the U.S. dollar but advanced against the yen, with EUR/USD slipping 0.10% to hit 1.3066 and EUR/JPY climbing 0.48% to hit 109.03.
Elsewhere, demand for the greenback remained supported after the Federal Reserve upgraded its outlook for the U.S. economy, dampening expectations for a fresh round of easing.
In its rate statement on Tuesday, the Fed said it now expects to see “moderate economic growth” after its January statement said growth would be “modest” and added that higher oil prices could place upward pressure on inflation.
EUR/GBP pulled away from 0.8296, the pair’s lowest since February 17, to hit 0.8320 during European morning trade, still down 0.11% on the day.
The pair was likely to find support at 0.8288, the low of February 17 and resistance at 0.8398, the high of March 8.
The pound came under pressure after official data showed that the number of people claiming unemployment benefits in the U.K. rose more-than-expected in February, while the unemployment rate held steady at 8.4%, the highest level since 1995.
The U.K. Office for National Statistics said that the claimant count rose by a seasonally adjusted 7,200 in February, above expectations for an increase of 6,000.
In the euro zone, a report showed that industrial production across the region rose in January for the first time in three months, while the annualized rate of consumer price inflation was unchanged in February and remained above the European Central Bank’s target.
Eurostat said industrial production was up 0.2% in January, below expectations for an increase of 0.8%.
In a separate report, Eurostat said consumer prices rose by 0.5% last month and were up 2.7% year-over-year. The annual rate of inflation was in line with preliminary estimates, while the figure for January was revised up to 2.7% from 2.6%.
The euro remained lower against the U.S. dollar but advanced against the yen, with EUR/USD slipping 0.10% to hit 1.3066 and EUR/JPY climbing 0.48% to hit 109.03.
Elsewhere, demand for the greenback remained supported after the Federal Reserve upgraded its outlook for the U.S. economy, dampening expectations for a fresh round of easing.
In its rate statement on Tuesday, the Fed said it now expects to see “moderate economic growth” after its January statement said growth would be “modest” and added that higher oil prices could place upward pressure on inflation.