Investing.com – The euro extended early gains against the pound on Wednesday, after the minutes of the Bank of England’s most recent policy setting meeting showed the bank saw “merit in waiting” to examine the effect of higher oil prices, easing speculation over a rate hike.
EUR/GBP hit 0.8711 during European morning trade, the daily high; the pair subsequently consolidated at 0.8709, gaining 0.38%.
The pair was likely to find support at 0.8624, the low of March 15 and resistance at 0.8743, the high of March 21.
The minutes of the banks March 9-10 meeting showed that the bank's Monetary Policy Committee maintained its 6-3 split in favor of keeping rates on hold this month, seeing no major change in the medium-term outlook.
Later in the day, the U.K. Chancellor of the Exchequer George Osborne was to unveil the country’s 2011 budget. The government plans to slash a deficit of 10% of national output before the 2015 election, while shoring up the uneven economic recovery.
The pound was also down against the U.S. dollar, with GBP/USD shedding 0.38% to hit 1.6300.
Elsewhere, the fate of Portugal’s government was hanging in the balance on Wednesday, after the country’s Prime Minister threatened to resign if a vote on fresh austerity measures failed to pass, fanning fears that the country was moving closer to an international bailout.
EUR/GBP hit 0.8711 during European morning trade, the daily high; the pair subsequently consolidated at 0.8709, gaining 0.38%.
The pair was likely to find support at 0.8624, the low of March 15 and resistance at 0.8743, the high of March 21.
The minutes of the banks March 9-10 meeting showed that the bank's Monetary Policy Committee maintained its 6-3 split in favor of keeping rates on hold this month, seeing no major change in the medium-term outlook.
Later in the day, the U.K. Chancellor of the Exchequer George Osborne was to unveil the country’s 2011 budget. The government plans to slash a deficit of 10% of national output before the 2015 election, while shoring up the uneven economic recovery.
The pound was also down against the U.S. dollar, with GBP/USD shedding 0.38% to hit 1.6300.
Elsewhere, the fate of Portugal’s government was hanging in the balance on Wednesday, after the country’s Prime Minister threatened to resign if a vote on fresh austerity measures failed to pass, fanning fears that the country was moving closer to an international bailout.