Investing.com - The euro climbed to a fresh session high against the pound on Friday, supported better-than-expected euro zone retail sales data and market anticipation ahead of a key U.S. employment report expected later in the day.
EUR/GBP hit 0.7883 during European afternoon trade, the daily high; the pair subsequently consolidated at 0.7882, advancing 0.40%.
The pair was likely to find support at 0.7824, Thursday's low and resistance at 0.7934, the high of July 10.
The euro found support after official data showed earlier that retail sales in the euro zone rose 0.1% in June, beating expectations for a 0.1% decline and following a 0.8% rise the previous month.
But sentiment on the single currency remained vulnerable after ECB President Draghi said the bank may undertake bond purchases in order to bring down the "exceptionally high" borrowing costs of stressed euro zone members, but provided no specific details on how and when these activities may be carried out.
Draghi also said that any such action by the ECB was conditional on euro zone governments experiencing difficulty on bond markets activating the bloc’s bailout funds to purchase government bonds and accepting strict conditions and supervision.
The statement disappointed market expectations for bold steps to counter the debt crisis, which have been building since Draghi pledged last week to do whatever is necessary to preserve the euro.
The ECB also left interest rates unchanged at a record low 0.75%.
Meanwhile, investors were eyeing the release of U.S. jobs data, as the results could give more indications on whether or not the Federal Reserve will need to add stimulus to shore up growth, after the central bank refrained from implementing fresh easing measures on Wednesday.
Elsewhere, the pound was also higher against the U.S. dollar with GBP/USD rising 0.38%, to hit 1.5572.
Also Friday, the Markit CIPS U.K. services purchasing managers' index declined to 51.0 in July, its lowest level since December 2010, from a reading of 51.3 the previous month, disappointing expectations for a rise to 51.6.
Later in the day, the U.S. was to release government data on non-farm employment change and the unemployment rate. The Institute of Supply Management was also to publish a report on non-manufacturing activity.
EUR/GBP hit 0.7883 during European afternoon trade, the daily high; the pair subsequently consolidated at 0.7882, advancing 0.40%.
The pair was likely to find support at 0.7824, Thursday's low and resistance at 0.7934, the high of July 10.
The euro found support after official data showed earlier that retail sales in the euro zone rose 0.1% in June, beating expectations for a 0.1% decline and following a 0.8% rise the previous month.
But sentiment on the single currency remained vulnerable after ECB President Draghi said the bank may undertake bond purchases in order to bring down the "exceptionally high" borrowing costs of stressed euro zone members, but provided no specific details on how and when these activities may be carried out.
Draghi also said that any such action by the ECB was conditional on euro zone governments experiencing difficulty on bond markets activating the bloc’s bailout funds to purchase government bonds and accepting strict conditions and supervision.
The statement disappointed market expectations for bold steps to counter the debt crisis, which have been building since Draghi pledged last week to do whatever is necessary to preserve the euro.
The ECB also left interest rates unchanged at a record low 0.75%.
Meanwhile, investors were eyeing the release of U.S. jobs data, as the results could give more indications on whether or not the Federal Reserve will need to add stimulus to shore up growth, after the central bank refrained from implementing fresh easing measures on Wednesday.
Elsewhere, the pound was also higher against the U.S. dollar with GBP/USD rising 0.38%, to hit 1.5572.
Also Friday, the Markit CIPS U.K. services purchasing managers' index declined to 51.0 in July, its lowest level since December 2010, from a reading of 51.3 the previous month, disappointing expectations for a rise to 51.6.
Later in the day, the U.S. was to release government data on non-farm employment change and the unemployment rate. The Institute of Supply Management was also to publish a report on non-manufacturing activity.