Investing.com – The euro rebounded from a two-month low against the pound on Thursday, boosted by reports that China is interested in buying bailout bonds for Portugal but sentiment remained fragile amid worries over Greek debt.
EUR/GBP hit 0.8710 during European morning trade, the daily high; the pair subsequently consolidated at 0.8691, gaining 0.40%.
The pair was likely to find support at 0.8631, Wednesday’s low and a two-month low and resistance at 0.8751, the high of May 24.
The single currency found support after European Financial Stability Facility Chief Executive Officer Klaus Regling said China was “clearly interested” in buying Portuguese bailout bonds when the EFSF sells them in June.
Meanwhile, data on Wednesday confirmed that the U.K. economy grew 0.5% in the first quarter after contracting by the same amount in the last three months of 2010. Annual growth was unrevised at 1.8%.
The report said that household spending saw its sharpest quarterly fall in almost two years, underlining the view that U.K. interest rates are unlikely to rise soon.
The euro was also higher against the U.S. dollar, with EUR/USD rising 0.50% to hit 1.4158.
Later Thursday, European Central Bank President Jean-Claude Trichet was to speak, while Bank of England Deputy Governor Paul Tucker was also to speak.
EUR/GBP hit 0.8710 during European morning trade, the daily high; the pair subsequently consolidated at 0.8691, gaining 0.40%.
The pair was likely to find support at 0.8631, Wednesday’s low and a two-month low and resistance at 0.8751, the high of May 24.
The single currency found support after European Financial Stability Facility Chief Executive Officer Klaus Regling said China was “clearly interested” in buying Portuguese bailout bonds when the EFSF sells them in June.
Meanwhile, data on Wednesday confirmed that the U.K. economy grew 0.5% in the first quarter after contracting by the same amount in the last three months of 2010. Annual growth was unrevised at 1.8%.
The report said that household spending saw its sharpest quarterly fall in almost two years, underlining the view that U.K. interest rates are unlikely to rise soon.
The euro was also higher against the U.S. dollar, with EUR/USD rising 0.50% to hit 1.4158.
Later Thursday, European Central Bank President Jean-Claude Trichet was to speak, while Bank of England Deputy Governor Paul Tucker was also to speak.