Forex Pros – The euro edged higher against the pound on Monday, but gains were limited amid uncertainty ahead of a meeting of European finance leaders on efforts to resolve the region’s sovereign-debt problems later in the day.
EUR/GBP hit 0.8730 during European morning trade, the daily high; the pair subsequently consolidated at 0.8720, easing up 0.05%.
The pair was likely to find short-term support at 0.8672, last Thursday’s low and a seven-week low and resistance at 0.8799, Friday’s high.
Euro zone finance ministers were to discuss further support for Greece which is struggling to meet the terms of a EUR110 billion European Union/International Monetary Fund bailout last year.
Also on the agenda was the approval of EUR78 billion in aid for Portugal but the situation was complicated by the weekend arrest of the head of the IMF Dominique Strauss-Kahn on sexual assault charges.
Analysts were concerned about the impact of Mr. Strauss-Kahn’s absence from the meeting.
The euro was also fractionally higher against the U.S. dollar, with EUR/USD easing up 0.02% to hit 1.4123.
Earlier in the day, a report by U.K. property website Rightmove showed that U.K. house prices rose to an almost three-year high in May.
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