Investing.com – The euro was down against the pound on Wednesday, tumbling to a 2-month low, amid continuing fears that Ireland’s debt crisis could spread and amid heightened tensions on the Korean peninsula.
EUR/GBP hit 0.8428 European morning trade, the pair’s lowest since September 21; the pair subsequently consolidated at 0.8444, shedding 0.34%.
The pair was likely to find support at 0.8388, the low of September 21 and resistance at 0.8545, Tuesday’s high.
Earlier in the day, data showed that German business confidence unexpectedly surged to the highest level since records for a reunified Germany began two decades ago, as domestic spending increased.
The Ifo institute said its index of German business climate increased to 109.3 in November after rising to107.7 in October. Analysts had expected the index to decline to 107.5 in November.
Separate data showed that industrial new orders in the euro zone fell more-than-expected in September.
Later in the day, Ireland was to unveil a four year austerity plan, as part of a precondition for a bailout by the European Union and the International Monetary Fund.
Elsewhere, North Korea’s official KCNA news agency said early Wednesday that South Korea was driving the peninsula to the “brink of war” with "reckless military provocation" and by postponing humanitarian aid.
The euro was also down against the U.S. dollar, with EUR/USD shedding 0.44% to hit 1.3309.
Earlier Tuesday, official data showed that the U.K. economy grew in line with expectations during the third quarter. The U.K.’s National Statistics Office said gross domestic product expanded at a seasonally adjusted rate of 0.8% during the third quarter, unchanged from a preliminary estimate of 0.8%.
EUR/GBP hit 0.8428 European morning trade, the pair’s lowest since September 21; the pair subsequently consolidated at 0.8444, shedding 0.34%.
The pair was likely to find support at 0.8388, the low of September 21 and resistance at 0.8545, Tuesday’s high.
Earlier in the day, data showed that German business confidence unexpectedly surged to the highest level since records for a reunified Germany began two decades ago, as domestic spending increased.
The Ifo institute said its index of German business climate increased to 109.3 in November after rising to107.7 in October. Analysts had expected the index to decline to 107.5 in November.
Separate data showed that industrial new orders in the euro zone fell more-than-expected in September.
Later in the day, Ireland was to unveil a four year austerity plan, as part of a precondition for a bailout by the European Union and the International Monetary Fund.
Elsewhere, North Korea’s official KCNA news agency said early Wednesday that South Korea was driving the peninsula to the “brink of war” with "reckless military provocation" and by postponing humanitarian aid.
The euro was also down against the U.S. dollar, with EUR/USD shedding 0.44% to hit 1.3309.
Earlier Tuesday, official data showed that the U.K. economy grew in line with expectations during the third quarter. The U.K.’s National Statistics Office said gross domestic product expanded at a seasonally adjusted rate of 0.8% during the third quarter, unchanged from a preliminary estimate of 0.8%.