Investing.com - The euro was steady close to a three-week high against the pound on Wednesday, as expectations that the European Central Bank will soon act to stem the debt crisis in the euro zone supported demand for the single currency.
EUR/GBP hit 0.7929 during European morning trade, the session low; the pair subsequently consolidated at 0.7937, dipping 0.05%.
The pair was likely to find support at 0.7905, Tuesday’s low and resistance at 0.7953, Tuesday’s high and a three-week high.
The euro has remained supported in recent weeks by growing expectations that the ECB is working on measures to help stabilize the euro zone's sovereign debt markets, ahead of its next policy meeting on September 6.
Earlier Wednesday, Italy saw borrowing costs decline to the lowest level since March at an auction of six-month government bonds which attracted solid investor demand.
The pair looked likely to remain locked in a tight range ahead of a speech by Federal Reserve Chairman Ben Bernanke at an annual symposium in Jackson Hole, Wyoming on Friday, amid ongoing speculation over how close the U.S. central bank is to implementing more stimulus measures.
Last week’s minutes of the Fed’s August meeting indicated that many policymakers may be leaning towards additional quantitative easing.
The outlook for the pound remained fragile as concerns over broad economic weakness kept alive expectations for another round of monetary easing by the Bank of England.
The euro was little changed against the U.S. dollar and the yen, with EUR/USD dipping 0.06% to 1.2557 and EUR/JPY inching up 0.02% to 98.65.
Later in the day, the U.S. was to release revised data on second quarter economic growth, as well as industry data on pending home sales.
EUR/GBP hit 0.7929 during European morning trade, the session low; the pair subsequently consolidated at 0.7937, dipping 0.05%.
The pair was likely to find support at 0.7905, Tuesday’s low and resistance at 0.7953, Tuesday’s high and a three-week high.
The euro has remained supported in recent weeks by growing expectations that the ECB is working on measures to help stabilize the euro zone's sovereign debt markets, ahead of its next policy meeting on September 6.
Earlier Wednesday, Italy saw borrowing costs decline to the lowest level since March at an auction of six-month government bonds which attracted solid investor demand.
The pair looked likely to remain locked in a tight range ahead of a speech by Federal Reserve Chairman Ben Bernanke at an annual symposium in Jackson Hole, Wyoming on Friday, amid ongoing speculation over how close the U.S. central bank is to implementing more stimulus measures.
Last week’s minutes of the Fed’s August meeting indicated that many policymakers may be leaning towards additional quantitative easing.
The outlook for the pound remained fragile as concerns over broad economic weakness kept alive expectations for another round of monetary easing by the Bank of England.
The euro was little changed against the U.S. dollar and the yen, with EUR/USD dipping 0.06% to 1.2557 and EUR/JPY inching up 0.02% to 98.65.
Later in the day, the U.S. was to release revised data on second quarter economic growth, as well as industry data on pending home sales.