Forex Pros — The euro pulled away from a 15-month high against the pound on Monday, after ratings agency Standard and Poor’s said a debt rollover plan for Greece could amount to a default.
EUR/GBP hit 0.9006 during European morning trade, the pair’s lowest since last Thursday; the pair subsequently consolidated at 0.9012, shedding 0.25%.
The pair was likely to find support at 0.8965, the low of June 29 and resistance at 0.9083, last Friday’s high and a 15-month high.
French lenders proposed a plan to reinvest half of the proceeds from maturing Greek government bonds into new 30-year Greek bonds. The European Central Plan said that it supported the plan, as long as it was voluntary.
S&P said earlier Monday that the proposed debt rollover plan may place the country in “selective default” under its criteria.
Over the weekend, euro zone finance ministers approved a EUR12 billion installment of Greece’s bailout and said details of a second aid package for Athens would be finalized by mid-September.
Meanwhile, the euro edged higher against the U.S. dollar, with EUR/USD easing up 0.03% to hit 1.4528.
Also Monday, official data showed that construction sector activity in the U.K., which makes up around 6% of economic output, declined in line with expectations in June.
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