Investing.com – The euro was down against the pound on Wednesday, tumbling to a 5-day low as the passage of Ireland's emergency budget through parliament failed to ease fears over sovereign debt contagion in the single currency bloc.
EUR/GBP hit 0.8381 during European early afternoon trade, the pair’s lowest since December 1; the pair subsequently consolidated at 0.8384, shedding 0.38%.
The pair was likely to find support at 0.8333, the low of December 1 and a 10-week low and resistance at 0.8481, Tuesday’s high.
On Tuesday, Ireland moved closer to securing an EUR85 billion international bailout package after the austerity budget passed the first in a series of votes to tackle what Finance Minister Brian Lenihan called the “worst crisis in our history.”
However fears remained over the divide among euro-zone countries on how best to provide a more long-term solution to the region's sovereign debt problems.
On Tuesday, International Monetary Fund Managing Director Dominique Strauss-Kahn criticized the European Union’s approach to the debt crisis, saying the EU needed to find a “comprehensive” solution and not rely on a “case-by-case” method.
The euro was also down against the U.S. dollar, with EUR/USD shedding 0.20% to hit 1.3234.
Also Wednesday, the Confederation of British Industry said U.K. industrial orders rose to a two year high in December.
CBI Chief Economic Adviser Ian McCafferty said, “These figures show that the recovery in the manufacturing sector is well underway.”
EUR/GBP hit 0.8381 during European early afternoon trade, the pair’s lowest since December 1; the pair subsequently consolidated at 0.8384, shedding 0.38%.
The pair was likely to find support at 0.8333, the low of December 1 and a 10-week low and resistance at 0.8481, Tuesday’s high.
On Tuesday, Ireland moved closer to securing an EUR85 billion international bailout package after the austerity budget passed the first in a series of votes to tackle what Finance Minister Brian Lenihan called the “worst crisis in our history.”
However fears remained over the divide among euro-zone countries on how best to provide a more long-term solution to the region's sovereign debt problems.
On Tuesday, International Monetary Fund Managing Director Dominique Strauss-Kahn criticized the European Union’s approach to the debt crisis, saying the EU needed to find a “comprehensive” solution and not rely on a “case-by-case” method.
The euro was also down against the U.S. dollar, with EUR/USD shedding 0.20% to hit 1.3234.
Also Wednesday, the Confederation of British Industry said U.K. industrial orders rose to a two year high in December.
CBI Chief Economic Adviser Ian McCafferty said, “These figures show that the recovery in the manufacturing sector is well underway.”