Forex Pros – The euro was down against the pound on Wednesday, slipping to a daily low, weighed by uncertainty over whether Greece will need supplementary financial aid.
EUR/GBP hit 0.8770 during European morning trade, the daily low; the pair subsequently consolidated at 0.8778, shedding 0.48%.
The pair was likely to find support at 0.8719, Tuesday’s low and a one-month low and resistance at 0.8897, the high of May 6.
On Tuesday, media reports, citing a senior Greek government official, said Athens expected to receive a new aid package totaling almost EUR60 billion as soon as next month. Greece subsequently denied the report.
Earlier Wednesday, French Finance Minister Christine Lagarde said that it was hard to see Greece returning to debt markets in 2012, adding that Europe would have to keep financing countries in difficulty to avoid a costly restructuring.
Also Wednesday, official data showed that Britain’s trade deficit widened more-than-expected in March.
The Office for National Statistics said that the goods trade gap widened to GBP7.66 billion from GBP6.99 billion in February, some way above the GBP7.25 billion pounds economists had expected.
Elsewhere, the euro edged higher against the U.S. dollar, with EUR/USD easing up 0.06% to hit 1.4417.
Later in the day, the Bank of England was to publish its quarterly inflation report.
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