Investing.com – The euro edged higher against the pound on Monday, but the single currency remained vulnerable ahead of a Belgian government bond auction later in the day.
EUR/GBP hit 0.8609 during European morning trade, the daily high; the pair subsequently consolidated at 0.8593, gaining 0.22%.
The pair was likely to find support at 0.8568, the days low and short-term resistance at 0.8617, Friday’s high.
Belgium was looking to raise as much as EUR2 billion after ratings agency Standard & Poor's downgraded the country's rating by one notch on Friday.
Ahead of the auction, Belgium's benchmark 10-year yield climbed to its highest level since 2000, rising close to 6%.
The euro remained supported by speculation European Union leaders are moving closer to agreeing on a fiscal pact to halt the spread of the region’s debt crisis.
The pact, if agreed, would make budget discipline legally binding and enforceable by European authorities and would give the European Central Bank more scope to undertake large scale bond purchases.
Earlier in the day, Moody's Investors Service warned that the rapid escalation of the sovereign and banking crisis in the single currency bloc was threatening the credit ratings of all European government bonds.
The euro was sharply higher against the U.S. dollar, with EUR/USD surging 1.12% to hit 1.3386.
Later in the day, the U.K. was to publish industry data on retail sales, while Germany was to release a report on consumer climate.
EUR/GBP hit 0.8609 during European morning trade, the daily high; the pair subsequently consolidated at 0.8593, gaining 0.22%.
The pair was likely to find support at 0.8568, the days low and short-term resistance at 0.8617, Friday’s high.
Belgium was looking to raise as much as EUR2 billion after ratings agency Standard & Poor's downgraded the country's rating by one notch on Friday.
Ahead of the auction, Belgium's benchmark 10-year yield climbed to its highest level since 2000, rising close to 6%.
The euro remained supported by speculation European Union leaders are moving closer to agreeing on a fiscal pact to halt the spread of the region’s debt crisis.
The pact, if agreed, would make budget discipline legally binding and enforceable by European authorities and would give the European Central Bank more scope to undertake large scale bond purchases.
Earlier in the day, Moody's Investors Service warned that the rapid escalation of the sovereign and banking crisis in the single currency bloc was threatening the credit ratings of all European government bonds.
The euro was sharply higher against the U.S. dollar, with EUR/USD surging 1.12% to hit 1.3386.
Later in the day, the U.K. was to publish industry data on retail sales, while Germany was to release a report on consumer climate.