Forexpros – The broadly weaker euro was lower against the pound on Monday, as the lack of headway by finance ministers in resolving the euro zone’s financial crisis and averting a default by Greece weighed.
EUR/GBP hit 0.8671 during European late morning trade, the pair’s lowest since last Wednesday; the pair subsequently consolidated at 0.8684, shedding 0.64%.
The pair was likely to find support at 0.8637, last Wednesday’s low and resistance at 0.8788, last Friday’s high.
A meeting of European Union finance ministers over the weekend failed to make any significant headway on dealing with the financial crisis in the region.
Ministers warned they may withhold Greece’s next tranche of bailout aid, due in October, if Athens fails to meet deficit reduction targets. After the meeting, Greek Prime Minister George Papandreou canceled a planned visit to the U.S. in order to hold crisis talks at home.
But the euro remained supported amid speculation that the Bank of England may resort to fresh monetary stimulus measures to shore up growth after a recent slew of soft economic data underlined fears over the fragile U.K. economy.
The pound was also weighed by concerns over the exposure of U.K. lenders to euro zone sovereign debt.
Elsewhere, the pound was lower against the U.S. dollar, with GBP/USD shedding 0.37% to hit 1.5732.
Later in the day, officials from the EU and the International Monetary Fund were to hold talks with Greek Finance Minister Evangelos Venizelos to discuss extra steps Athens can take to qualify for its next tranche of aid.
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