Investing.com – The euro was sharply lower against the pound on Tuesday, tumbling to a 5-day low as concerns that sovereign debt problems would spread beyond Ireland to other vulnerable euro zone members weighed on the single currency.
EUR/GBP hit 0.8463 during European afternoon trade, the pair’s lowest since November 16; the pair subsequently consolidated at 0.8472, tumbling 0.79%.
The pair was likely to find support at 0.8388, the low of September 21 and resistance at 0.8594, Monday’s high.
Earlier in the day, German Chancellor Angela Merkel said Ireland's crisis was different to Greece's but just as worrying and the single currency was in an "exceptionally serious" situation.
Political turmoil in Ireland stoked fears that the crisis would spread to other indebted euro zone nations, such as Spain or Portugal.
The euro was also down against the U.S. dollar, with EUR/USD plunging 1.15% to hit 1.3471.
Also Tuesday, Adair Turner, chairman of the U.K. Financial Services Authority said that it was “broadly speaking not the case” that British banks were heavily exposed in Ireland.
Separately, industry data released earlier in the day showed that U.K. mortgage approvals fell to their lowest level since March 2009 in October, while gross mortgage lending fell to its lowest level since 2001.
EUR/GBP hit 0.8463 during European afternoon trade, the pair’s lowest since November 16; the pair subsequently consolidated at 0.8472, tumbling 0.79%.
The pair was likely to find support at 0.8388, the low of September 21 and resistance at 0.8594, Monday’s high.
Earlier in the day, German Chancellor Angela Merkel said Ireland's crisis was different to Greece's but just as worrying and the single currency was in an "exceptionally serious" situation.
Political turmoil in Ireland stoked fears that the crisis would spread to other indebted euro zone nations, such as Spain or Portugal.
The euro was also down against the U.S. dollar, with EUR/USD plunging 1.15% to hit 1.3471.
Also Tuesday, Adair Turner, chairman of the U.K. Financial Services Authority said that it was “broadly speaking not the case” that British banks were heavily exposed in Ireland.
Separately, industry data released earlier in the day showed that U.K. mortgage approvals fell to their lowest level since March 2009 in October, while gross mortgage lending fell to its lowest level since 2001.