Forexpros – The euro trimmed gains against the pound on Wednesday, pulling back from a four-day high after Germany’s high court ruled that parliament must approve future euro zone rescue packages.
EUR/GBP pulled away from 0.8829, the pair’s highest since September 1, to hit 0.8797 during European morning trade, still up 0.20% over the day.
The pair was likely to find support at 0.8737, Monday’s low and resistance at 0.8834, the high of August 25.
Germany’s constitutional court said the government must seek the approval of parliament’s budget committee before granting future major aid deals and said that the ruling should not be misinterpreted as a “blank cheque” for future rescue packages.
The ruling may make it more difficult for the euro zone to respond quickly in delivering financial aid to indebted member states.
In the U.K., data showed that manufacturing production rose in line with expectations in July but industrial production fell unexpectedly due to a big drop in oil and gas extraction.
The data added to concerns that the Bank of England may lean further towards implementing fresh measures to boost economic growth.
Meanwhile, the euro was higher against the U.S. dollar, with EUR/USD rising 0.38% to hit 1.4053.
Also Wednesday, U.K. mortgage lender Halifax said house prices fell 1.2% in August, and were 2.6% lower in the three months to August compared to the same period a year ago.
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