Investing.com - The euro tumbled to a 19-month low against the pound on Wednesday, as upbeat U.K. employment data supported demand for sterling, while ongoing concerns over the debt crisis in the euro zone continued to weigh on the single currency.
EUR/GBP hit 0.8186 during European late morning trade, the pair’s lowest since August 31, 2010; the pair subsequently consolidated at 0.8189, dropping 0.66%.
The pair was likely to find support at 0.8141, the low of August 23, 2010 and resistance at 0.8244, the day’s high.
The pound found support after official data showed that the number of people claiming unemployment benefits in the U.K. rose less-than-expected last month, while the unemployment rate ticked down unexpectedly.
The Office for National Statistics said that the claimant count rose by a seasonally adjusted 3,600 in March, below expectations for an increase of 7,000.
The previous month’s figure was revised down to an increase of 4,500 from a previously reported gain of 7,200.
The rate of unemployment ticked down to 8.3% from 8.4% in February, which was the highest since 1995.
In addition, the minutes of the Bank of England’s April meeting showed that just one policymaker voted in favor of additional monetary easing, after two of the nine member monetary policy committee favored additional stimulus in March.
Meanwhile, the euro remained under pressure ahead of a critical auction of two and 10-year Spanish government bonds on Thursday, amid uncertainty over whether the government will be able to reduce one of the euro zone’s largest budget deficits in the face of a looming recession.
Concerns over Portugal’s economic health intensified after Prime Minister Pedro Passos Coelho said Wednesday there were "no guarantees" that the country would meet its commitment to return to the international capital markets before September 2013.
Elsewhere, the pound was also higher against the U.S. dollar with GBP/USD adding 0.23%, to hit 1.5975.
Also Wednesday, official data showed that the euro zone current account swung to an unexpected deficit of EUR1.3 billion in February, from a surplus of EUR3.7 billion the previous month.
Economists had expected the region’s current account surplus to widen to EUR5.0 billion in February.
EUR/GBP hit 0.8186 during European late morning trade, the pair’s lowest since August 31, 2010; the pair subsequently consolidated at 0.8189, dropping 0.66%.
The pair was likely to find support at 0.8141, the low of August 23, 2010 and resistance at 0.8244, the day’s high.
The pound found support after official data showed that the number of people claiming unemployment benefits in the U.K. rose less-than-expected last month, while the unemployment rate ticked down unexpectedly.
The Office for National Statistics said that the claimant count rose by a seasonally adjusted 3,600 in March, below expectations for an increase of 7,000.
The previous month’s figure was revised down to an increase of 4,500 from a previously reported gain of 7,200.
The rate of unemployment ticked down to 8.3% from 8.4% in February, which was the highest since 1995.
In addition, the minutes of the Bank of England’s April meeting showed that just one policymaker voted in favor of additional monetary easing, after two of the nine member monetary policy committee favored additional stimulus in March.
Meanwhile, the euro remained under pressure ahead of a critical auction of two and 10-year Spanish government bonds on Thursday, amid uncertainty over whether the government will be able to reduce one of the euro zone’s largest budget deficits in the face of a looming recession.
Concerns over Portugal’s economic health intensified after Prime Minister Pedro Passos Coelho said Wednesday there were "no guarantees" that the country would meet its commitment to return to the international capital markets before September 2013.
Elsewhere, the pound was also higher against the U.S. dollar with GBP/USD adding 0.23%, to hit 1.5975.
Also Wednesday, official data showed that the euro zone current account swung to an unexpected deficit of EUR1.3 billion in February, from a surplus of EUR3.7 billion the previous month.
Economists had expected the region’s current account surplus to widen to EUR5.0 billion in February.