Forexpros – The euro slipped against the pound on Thursday, as investors eyed interest rate decisions by both the Bank of England and the European Central Bank, while a two-day European Union summit starting later in the day also loomed.
EUR/GBP hit 0.8514 during European morning trade, the daily low; the pair subsequently consolidated at 0.8521, slipping 0.16%.
The pair was likely to find short-term support at 0.8508, Wednesday’s low and a one-month low and resistance at 0.8552, the session high.
The BoE was widely expected to keep rates unchanged at a record low of 0.5% and not announce any increase to its GBP275 billion asset purchase program.
The ECB was expected to announce a 0.25% interest rate cut, bringing the rate to a record low 1% in a bid to bolster faltering growth in the euro zone.
Meanwhile, investors remained jittery after Germany dampened expectations for a breakthrough on an agreement to arrest the spread of the debt crisis in the euro zone at a summit of EU leaders set to begin later Thursday.
European leaders were to discuss proposed changes to EU treaties which would allow for greater fiscal integration and stricter enforcement of budgetary discipline in the single currency bloc, clearing the way for the ECB to play a bigger role in stabilizing euro zone bond markets.
The euro was also lower against the U.S. dollar, with EUR/USD dipping 0.07% to hit 1.3400.
Also Thursday, the U.S. was to release official data on initial jobless claims.
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