Investing.com – The euro was trading close to a two-month low against the pound on Wednesday, as ongoing concerns over the worsening Greek sovereign debt crisis cast a pall over the single currency.
EUR/GBP hit 0.8676 during European morning trade, the pair’s lowest since Monday; the pair subsequently consolidated at 0.8694, shedding 0.22%.
The pair was likely to find short-term support at 0.8663, Monday’s low and a two-month low and resistance at 0.8751, Tuesday’s high.
The euro was weighed by speculation that Greece may call a snap election after the government failed to reach consensus with the opposition on new austerity measures.
Meanwhile, official data confirmed earlier that the U.K. economy grew just 0.5% in the first quarter after contracting by the amount in the last three months of 2010. Annual growth was unrevised at 1.8%.
The report said that household spending contracted by 0.6% on the quarter, its biggest drop since the second quarter of 2009 when the economy was still in recession.
The euro was also lower against the U.S. dollar, with EUR/USD slipping 0.15% to hit 1.4077.
Also Wednesday, data showed that Germany's consumer climate declined more-than-expected this month as the euro zone’s sovereign debt crisis and higher energy costs weighed on sentiment.
EUR/GBP hit 0.8676 during European morning trade, the pair’s lowest since Monday; the pair subsequently consolidated at 0.8694, shedding 0.22%.
The pair was likely to find short-term support at 0.8663, Monday’s low and a two-month low and resistance at 0.8751, Tuesday’s high.
The euro was weighed by speculation that Greece may call a snap election after the government failed to reach consensus with the opposition on new austerity measures.
Meanwhile, official data confirmed earlier that the U.K. economy grew just 0.5% in the first quarter after contracting by the amount in the last three months of 2010. Annual growth was unrevised at 1.8%.
The report said that household spending contracted by 0.6% on the quarter, its biggest drop since the second quarter of 2009 when the economy was still in recession.
The euro was also lower against the U.S. dollar, with EUR/USD slipping 0.15% to hit 1.4077.
Also Wednesday, data showed that Germany's consumer climate declined more-than-expected this month as the euro zone’s sovereign debt crisis and higher energy costs weighed on sentiment.