Investing.com - The euro edged higher against the pound on Monday, but remained vulnerable as sustained worries over the debt crisis in the euro zone weighed on market sentiment.
EUR/GBP hit 0.8594 during European morning trade, the pair’s highest since November 14; the pair subsequently consolidated at 0.8582, gaining 0.28%.
The pair was likely to find support at 0.8519, the low of November 16 and resistance at 0.8609, the high of November 7.
Earlier in the day, the spread between 10-year Spanish bond yields and their German counterparts widened as investors remained jittery despite the election of a new government.
Spain’s center-right opposition People's Party took a majority in Parliament after elections on Sunday and was expected to push through drastic austerity measures to try shore up the country’s economy and regain the country’s triple A credit rating.
Elsewhere, rating agency Moody's said a rise in French government debt yields and weaker growth prospects could be negative for the outlook on the country's credit rating.
Meanwhile, speculation that a U.S. congressional "super committee" was set to announce that it had failed in a three-month-long effort to draft a USD1.2 trillion deficit reduction plan weighed on market sentiment.
The pound was sharply lower against the U.S. dollar with GBP/USD tumbling 0.77%, to hit 1.5681.
Also Monday, a report by British property website Rightmove showed that house price inflation fell 3.1% in November after a 2.8% rise the previous month.
Later in the day, the U.S. was to release industry data on existing home sales.
EUR/GBP hit 0.8594 during European morning trade, the pair’s highest since November 14; the pair subsequently consolidated at 0.8582, gaining 0.28%.
The pair was likely to find support at 0.8519, the low of November 16 and resistance at 0.8609, the high of November 7.
Earlier in the day, the spread between 10-year Spanish bond yields and their German counterparts widened as investors remained jittery despite the election of a new government.
Spain’s center-right opposition People's Party took a majority in Parliament after elections on Sunday and was expected to push through drastic austerity measures to try shore up the country’s economy and regain the country’s triple A credit rating.
Elsewhere, rating agency Moody's said a rise in French government debt yields and weaker growth prospects could be negative for the outlook on the country's credit rating.
Meanwhile, speculation that a U.S. congressional "super committee" was set to announce that it had failed in a three-month-long effort to draft a USD1.2 trillion deficit reduction plan weighed on market sentiment.
The pound was sharply lower against the U.S. dollar with GBP/USD tumbling 0.77%, to hit 1.5681.
Also Monday, a report by British property website Rightmove showed that house price inflation fell 3.1% in November after a 2.8% rise the previous month.
Later in the day, the U.S. was to release industry data on existing home sales.