Investing.com – The euro was up against the pound on Tuesday, surging to a 6-day high as the single currency was boosted by broad dollar weakness and by short covering amid expectations of further pressure on the greenback.
EUR/GBP hit 0.8504 during European afternoon trade, the pair’s highest since December 6; the pair subsequently consolidated at 0.8498, surging 0.66%.
The pair was likely to find support at 0.8347, Monday’s low and short-term resistance at 0.8525, the high of December 3.
Earlier in the day, official data showed that U.K. consumer-price inflation unexpectedly accelerated in November, rising a percentage point above the Bank of England's 2% target for the 11th consecutive month.
The Office for National Statistics said the annualized rate of inflation was 3.3% last month, rising from 3.2% in October. In monthly terms, inflation rose 0.4% in November, up from 0.3% in October.
The report said that food, clothing, furniture and furnishings were the key drivers behind the increase in annual inflation.
Core consumer-price inflation, which excludes volatile food, energy, alcohol and tobacco costs, was steady at 2.7% in November. In monthly terms, it rose 0.2%, following a 0.1% gain in October.
The euro was also up against the U.S. dollar, with EUR/USD gaining 0.32% to hit 1.3434.
Earlier Tuesday, the ZEW Centre for Economic Research said that its index of German economic sentiment rose in December, while separate data showed that industrial production in the euro zone rose less-than-expected in October.
EUR/GBP hit 0.8504 during European afternoon trade, the pair’s highest since December 6; the pair subsequently consolidated at 0.8498, surging 0.66%.
The pair was likely to find support at 0.8347, Monday’s low and short-term resistance at 0.8525, the high of December 3.
Earlier in the day, official data showed that U.K. consumer-price inflation unexpectedly accelerated in November, rising a percentage point above the Bank of England's 2% target for the 11th consecutive month.
The Office for National Statistics said the annualized rate of inflation was 3.3% last month, rising from 3.2% in October. In monthly terms, inflation rose 0.4% in November, up from 0.3% in October.
The report said that food, clothing, furniture and furnishings were the key drivers behind the increase in annual inflation.
Core consumer-price inflation, which excludes volatile food, energy, alcohol and tobacco costs, was steady at 2.7% in November. In monthly terms, it rose 0.2%, following a 0.1% gain in October.
The euro was also up against the U.S. dollar, with EUR/USD gaining 0.32% to hit 1.3434.
Earlier Tuesday, the ZEW Centre for Economic Research said that its index of German economic sentiment rose in December, while separate data showed that industrial production in the euro zone rose less-than-expected in October.