Investing.com - The euro was down against the pound on Monday, falling to a daily low ahead of a meeting of euro zone finance ministers in Brussels to discuss whether the EUR750 billion bailout fund for euro-zone countries should be enlarged.
EUR/GBP hit 0.8454 during European afternoon trade, the daily low; the pair subsequently consolidated at 0.8471, shedding 0.40%.
The pair was likely to find support at 0.8388, last Thursday’s low and resistance at 0.8426, Friday’s high.
Ahead of the meeting, Belgian Finance Minister Didier Reynders said the EUR 750 billion bailout fund for euro zone countries should be expanded, breaking ranks with German Chancellor Angela Merkel and French President Nicolas Sarkozy, who last month rejected expanding the fund.
Meanwhile, Reuters reported that an International Monetary Fund report, to be delivered to the meeting in Brussels, said the euro zone should increase the size of its rescue fund and the European Central Bank should boost its bond buying markedly.
Ministers were also to discuss the outlook for Portugal, as the country struggled to quell speculation it will need a bailout.
The euro was also down against the U.S. dollar, with EUR/USD plunging 0.97% to hit 1.3285.
On Sunday, Federal Reserve Chairman Ben Bernanke said purchases of Treasuries beyond the USD600 billion announced last month were “certainly possible.”
The Fed chair also said it could be four to five years before the U.S. returned to a more normal jobless rate but that the U.S. economy was not likely to fall back into a recession.
EUR/GBP hit 0.8454 during European afternoon trade, the daily low; the pair subsequently consolidated at 0.8471, shedding 0.40%.
The pair was likely to find support at 0.8388, last Thursday’s low and resistance at 0.8426, Friday’s high.
Ahead of the meeting, Belgian Finance Minister Didier Reynders said the EUR 750 billion bailout fund for euro zone countries should be expanded, breaking ranks with German Chancellor Angela Merkel and French President Nicolas Sarkozy, who last month rejected expanding the fund.
Meanwhile, Reuters reported that an International Monetary Fund report, to be delivered to the meeting in Brussels, said the euro zone should increase the size of its rescue fund and the European Central Bank should boost its bond buying markedly.
Ministers were also to discuss the outlook for Portugal, as the country struggled to quell speculation it will need a bailout.
The euro was also down against the U.S. dollar, with EUR/USD plunging 0.97% to hit 1.3285.
On Sunday, Federal Reserve Chairman Ben Bernanke said purchases of Treasuries beyond the USD600 billion announced last month were “certainly possible.”
The Fed chair also said it could be four to five years before the U.S. returned to a more normal jobless rate but that the U.S. economy was not likely to fall back into a recession.