Investing.com – The euro trimmed gains against the pound on Wednesday, retreating from a daily high, after U.K. Conservative finance minister George Osborne outlined spending cuts worth GBP 80 billion aimed at reducing the country’s record budget deficit.
EUR/GBP hit 0.8789 after retreating from 0.8823, the daily high during European afternoon trade, gaining 0.54%.
The pair was likely to find support at 0.8703, the low of October 18 and resistance at 0.8837, the high of October 12 and a 6-month high.
Earlier in the day, Osborne said that the state pension age for men and women will rise to 66 by 2020. He also cut an additional GBB 7 billion off the welfare budget on top of the GBP 11 billion of reductions he identified in June’s budget. The cuts will result in the loss of around 490,000 public sector jobs over the next four years.
In his address to Parliament Osborne said, "Tackling this budget deficit is unavoidable. The decisions about how we do it are not. There are choices. And today we make them. Investment in the future rather than the bills of past failure. That is our choice".
Britain’s budget deficit currently stands at 11% of GDP, the highest in the G7 group of industrialized nations.
The euro was also up against the U.S. dollar, with EUR/USD surging 0.84% to hit 1.3842.
Also Wednesday, the Bank of England's Monetary Policy Committee minutes showed a three-way split among members at its most recent meeting in early October. Andrew Sentance voted for monetary tightening, Adam Posen voted for more quantitative easing and the rest of the committee maintained their view to leave policy unchanged.
EUR/GBP hit 0.8789 after retreating from 0.8823, the daily high during European afternoon trade, gaining 0.54%.
The pair was likely to find support at 0.8703, the low of October 18 and resistance at 0.8837, the high of October 12 and a 6-month high.
Earlier in the day, Osborne said that the state pension age for men and women will rise to 66 by 2020. He also cut an additional GBB 7 billion off the welfare budget on top of the GBP 11 billion of reductions he identified in June’s budget. The cuts will result in the loss of around 490,000 public sector jobs over the next four years.
In his address to Parliament Osborne said, "Tackling this budget deficit is unavoidable. The decisions about how we do it are not. There are choices. And today we make them. Investment in the future rather than the bills of past failure. That is our choice".
Britain’s budget deficit currently stands at 11% of GDP, the highest in the G7 group of industrialized nations.
The euro was also up against the U.S. dollar, with EUR/USD surging 0.84% to hit 1.3842.
Also Wednesday, the Bank of England's Monetary Policy Committee minutes showed a three-way split among members at its most recent meeting in early October. Andrew Sentance voted for monetary tightening, Adam Posen voted for more quantitative easing and the rest of the committee maintained their view to leave policy unchanged.