Investing.com – The euro was down against the pound on Monday, hovering close to a 7-week low as concerns over sovereign debt in peripheral euro zone nations, especially Ireland, weighed on the single currency.
EUR/GBP hit 0.8464 during European afternoon trade, a daily low; the pair subsequently consolidated at 0.8478, shedding 0.20%.
The pair was likely to find support at 0.8388, the low of September 21 and resistance at 0.8551, last Thursday’s high.
Earlier in the day, media outlets reported that Ireland was considering asking for money for its banks from the European Union's emergency fund in a bid to fend off the threat of a bailout for the state.
European Central Bank Vice President Vitor Constancio said aid would be available whether it was for Ireland's banks or the state and confirmed talks were under way.
"The Irish state is financed until part of next year, but it is also a problem of the banks that are at the centre of the problems in Ireland and considerations have to be pondered," he said.
The euro was also down against the U.S. dollar, with EUR/USD shedding 0.51% to hit 1.3621.
Earlier in the day, official data showed that the euro zone’s trade balance posted a larger-than-expected surplus in September as export growth outpaced the rise in imports year-on-year.
EUR/GBP hit 0.8464 during European afternoon trade, a daily low; the pair subsequently consolidated at 0.8478, shedding 0.20%.
The pair was likely to find support at 0.8388, the low of September 21 and resistance at 0.8551, last Thursday’s high.
Earlier in the day, media outlets reported that Ireland was considering asking for money for its banks from the European Union's emergency fund in a bid to fend off the threat of a bailout for the state.
European Central Bank Vice President Vitor Constancio said aid would be available whether it was for Ireland's banks or the state and confirmed talks were under way.
"The Irish state is financed until part of next year, but it is also a problem of the banks that are at the centre of the problems in Ireland and considerations have to be pondered," he said.
The euro was also down against the U.S. dollar, with EUR/USD shedding 0.51% to hit 1.3621.
Earlier in the day, official data showed that the euro zone’s trade balance posted a larger-than-expected surplus in September as export growth outpaced the rise in imports year-on-year.