Forex Pros – The euro slid to a seven-day low against the pound on Monday, as European Union policymakers appeared no closer to reaching an agreement over whether private investors would take part in a restructuring of Greek debt.
EUR/GBP hit 0.8814 during European morning trade, the pair’s lowest since June 2; the pair subsequently consolidated at 0.8817, shedding 0.27%.
The pair was likely to find support at 0.8746, the low of June 2 and resistance at 0.8922, Friday’s high.
The European Central Bank is opposed to German proposals for a bond swap, with the bank’s head Jean-Claude Trichet saying late last week that imposing losses on creditors would be the same as default.
But Eurogroup chairman Jean-Claude Juncker said over the weekend that a bailout for Greece must include “voluntary” investor participation and meet the approval of central bankers.
The pound’s gains remained limited after data on Friday showed U.K. industrial output contracted sharply in April, underlining expectations that the Bank of England is unlikely to raise interest rates this year.
The euro was also lower against the U.S. dollar, with EUR/USD dipping 0.04% to hit 1.4345.
Later in the day, ECB President Jean-Claude Trichet was to speak at an event in London, while BoE policymaker Martin Weale was also to speak.
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