Forexpros – The euro remained lower against the pound on Tuesday, trading within striking distance of an eight-month low as rising Italian and Spanish bond yields soured sentiment on the single currency.
EUR/GBP hit 0.8530 during European morning trade, the pair’s lowest since November 10; the pair subsequently consolidated at 0.8538, dropping 0.35%.
The pair was likely to find support at 0.8484, the low of November 10 and resistance at 0.8599, the high of November 8.
The euro came under pressure earlier, after a rise in Italian and Spanish bond yields underscored the challenges facing European leaders as they continue to struggle to contain the region’s debt crisis.
Meanwhile, data showed that the ZEW index of German economic sentiment declined significantly more-than-expected in November, falling to a three-year low of minus 55.2, as political uncertainty in Greece and Italy weighed on the outlook for the region.
A separate report showed that gross domestic product in the euro zone increased by 0.2% during the third quarter, in line with expectations, following growth of 0.2% in the previous quarter.
Germany’s GDP rose in line with expectations in the third quarter, expanding 0.5%, from an upwardly revised 0.3% in the preceding quarter.
France’s GDP expanded by 0.4% on the quarter, having contracted by 0.1% in the previous three months.
In the U.K., official data showed that consumer price inflation eased in October, ticking down to 5%, from a three-year high of 5.2% the previous month.
Analysts had expected CPI to tick down to 5.1%.
Elsewhere, the pound was lower against the U.S. dollar with GBP/USD sliding 0.32%, to hit 1.5856.
Later in the day, the U.S. was to release official data on retail sales and producer price inflation.
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