Investing.com – The euro was trading close to a two-week high against the pound on Monday, as concerns that upcoming data on U.K. second quarter economic growth could be weaker-than-expected weighed on sterling.
EUR/GBP hit 0.8844 during European morning trade, the daily high; the pair subsequently consolidated at 0.8829, gaining 0.24%.
The pair was likely to find support at 0.8761, the low of July 21 and short-term resistance at 0.8853, Friday’s high and a two-week high.
If Tuesday’s data showed weaker-than-expected economic growth or a contraction it would underline expectations that the Bank of England will keep interest rates on hold for the rest of this year and add to concerns that the bank may lean towards further monetary stimulus to boost growth.
Meanwhile, fears over a possible U.S. default escalated after talks between President Barack Obama and congressional leaders, aimed at raising the country’s USD14.3 trillion debt ceiling, broke down over the weekend.
The pound was also lower against the U.S. dollar, with GBP/USD sliding 0.11% to hit 1.6281.
Earlier Monday, ratings agency Moody's cut Greece’s sovereign debt rating by three notches to Ca, just one notch above default, saying the new aid package set a negative precedent for the creditors of other indebted nations.
EUR/GBP hit 0.8844 during European morning trade, the daily high; the pair subsequently consolidated at 0.8829, gaining 0.24%.
The pair was likely to find support at 0.8761, the low of July 21 and short-term resistance at 0.8853, Friday’s high and a two-week high.
If Tuesday’s data showed weaker-than-expected economic growth or a contraction it would underline expectations that the Bank of England will keep interest rates on hold for the rest of this year and add to concerns that the bank may lean towards further monetary stimulus to boost growth.
Meanwhile, fears over a possible U.S. default escalated after talks between President Barack Obama and congressional leaders, aimed at raising the country’s USD14.3 trillion debt ceiling, broke down over the weekend.
The pound was also lower against the U.S. dollar, with GBP/USD sliding 0.11% to hit 1.6281.
Earlier Monday, ratings agency Moody's cut Greece’s sovereign debt rating by three notches to Ca, just one notch above default, saying the new aid package set a negative precedent for the creditors of other indebted nations.