Forex - EUR/GBP tumbles to 1-month low after weak German data

Published 11/08/2010, 07:11 AM
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Investing.com – The euro extended early losses against the pound on Monday, tumbling to a 1-month low, following the release of worse-than-expected German industrial production data.

EUR/GBP hit 0.8619 during European early afternoon trade, the pair’s lowest since September 30; the pair subsequently consolidated at 0.8626, shedding 0.50%.

The pair was likely to find support at 0.8560, the low of September 30 and resistance at 0.8776, last Friday’s high.

Earlier in the day, Germany’s federal statistical office said industrial production fell more-than-expected in September , dropping 0.8%, after rising by a revised 1.5% August. Analysts had expected industrial production to rise by 0.4% in September.

Year-on-year, German industrial production rose by 7.9% in September, after rising by 10.7% in August.  Analysts had expected industrial production to rise at an annualized rate of 9.5% in September.

The euro was also down against the U.S. dollar, with EUR/USD tumbling 0.88% to hit 1.3910.

Also Monday, European Union Commissioner Olli Rehn was visiting Ireland to discuss the country's plans for fiscal austerity. The country's main opposition party said on Sunday that it would not support next month's budget after the government announced a package of EUR 15 billion in spending cuts aimed at reducing the country’s budget deficit.

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