Forexpros – The euro rose to a two-day high against the pound on Wednesday, as hopes for decisive action on the euro zone debt crisis boosted demand for the single currency.
EUR/GBP hit 0.8718 during late European morning trade, the pair’s highest since September 26; the pair subsequently consolidated at 0.8733, jumping 0.24%.
The pair was likely to find support at 0.8651, the low of September 26 and resistance at 0.8785, the high of September 22.
The single currency found support after European Commission President Jose Manuel Barroso indicated earlier that Greek banks could receive more help and that the country would not exit the single currency bloc.
The statement came ahead of a highly anticipated visit from officials from the International Monetary Fund, the European Union and the European Central Bank in Athens, later in the day.
Tuesday evening, Greece’s parliament voted a new property-tax law, bringing the country a step closer to securing further financial aid and avoiding a possible default.
The euro sharply weakened earlier, amid reports of divisions within the single currency bloc over the terms of Greece’s second EUR109 bailout tranche.
Meanwhile, the pound was weighed by ongoing speculation that the Bank of England may implement more monetary stimulus, before the end of the year to boost the faltering U.K. economy.
Sterling was fractionally lower against the U.S. dollar with GBP/USD inching down 0.006%, to trade at 1.5640.
Later in the day, a U.S. report on durable goods orders was to be released, while Federal Reserve Chairman Ben Bernanke was also scheduled to speak.
Forexpros
