Forex Pros – The euro extended losses against the pound on Monday, as the cost of insuring Greek sovereign debt against default rose after euro zone finance ministers deferred a final decision on emergency loans to Athens.
EUR/GBP hit 0.8798 during European morning trade, the daily low; the pair subsequently consolidated at 0.8803, shedding 0.38%.
The pair was likely to find support at 0.8723, last Thursday’s low and a two-week low and resistance at 0.8854, Friday’s high and a one-week high.
Finance ministers from the 17-nation euro zone said Sunday that a new financing strategy for Greece will be decided by early July and would be dependent on the Greek parliament passing unpopular new economic reforms and austerity measures.
Earlier Monday, the cost of insuring Greek sovereign debt against default surged to almost touch the euro-lifetime high hit on Friday.
The cost of insuring Italian government debt also rose, after ratings agency Moody’s placed Italy’s sovereign debt rating under review late Friday, adding to contagion fears in the single currency bloc.
The euro was also lower against the U.S. dollar, with EUR/USD shedding 0.60% to hit 1.4225.
Also Monday, U.K. property website Rightmove said that that house prices would finish 2011 with an annual gain of 2.0%, in contrast to its December forecast for a 2.5% fall.
Rightmove said house asking prices rose 0.6% in June after a 1.3% rise in May, reaching their highest level since an all-time high hit in May 2008.
ForexPros.com
