Investing.com – The euro slipped against the pound on Thursday, easing down to a daily low ahead of interest rate decisions from both the Bank of England and the European Central Bank later in the day.
EUR/GBP hit 0.8743 during European morning trade, the daily low; the pair subsequently consolidated at 0.8746, shedding 0.31%.
The pair was likely to find support at 0.8712, Tuesday’s low and resistance at 0.8796, Wednesday’s high.
The BoE was widely expected to leave rates on hold, while the ECB looked almost certain to opt for an early rate increase.
Markets have pared back expectations for a near-term BoE hike after poor U.K. industrial output data on Wednesday pointed to weaker first quarter economic growth.
A report showed industrial output unexpectedly suffered its biggest fall since August 2009 in February. In contrast, data on Tuesday showed the U.K. services sector picked up in March to grow at its fastest pace in more than a year.
The euro was also lower against the U.S. dollar, with EUR/USD shedding 0.35% to hit 1.4280.
On Wednesday, Portugal became the third euro zone member to seek a bailout from the European Union, with the size of the package expected to be as much as EUR80 billion, after the country paid almost 6% to borrow for 12 months in a government bond auction.
EUR/GBP hit 0.8743 during European morning trade, the daily low; the pair subsequently consolidated at 0.8746, shedding 0.31%.
The pair was likely to find support at 0.8712, Tuesday’s low and resistance at 0.8796, Wednesday’s high.
The BoE was widely expected to leave rates on hold, while the ECB looked almost certain to opt for an early rate increase.
Markets have pared back expectations for a near-term BoE hike after poor U.K. industrial output data on Wednesday pointed to weaker first quarter economic growth.
A report showed industrial output unexpectedly suffered its biggest fall since August 2009 in February. In contrast, data on Tuesday showed the U.K. services sector picked up in March to grow at its fastest pace in more than a year.
The euro was also lower against the U.S. dollar, with EUR/USD shedding 0.35% to hit 1.4280.
On Wednesday, Portugal became the third euro zone member to seek a bailout from the European Union, with the size of the package expected to be as much as EUR80 billion, after the country paid almost 6% to borrow for 12 months in a government bond auction.