Forexpros – The euro slipped lower against the pound on Thursday, as concerns over the outlook for the euro zone economy weighed after official data showed that the unemployment rate in the region rose to a euro-era high in January.
EUR/GBP hit 0.8359 during European morning trade, the pair’s lowest since February 21; the pair subsequently consolidated at 0.8361, sliding 0.14%.
The pair was likely to find support at 0.8309, the low of February 20 and resistance at 0.8382, the session high.
In a report earlier, Eurostat said that the euro zone’s unemployment rate rose to a seasonally adjusted 10.7% in January, up from 10.6% in December, whose figure was revised up from 10.4%.
Analysts had expected the jobless rate to dip to 10.4% in February.
A separate report showed that the euro zone’s manufacturing sector contracted for the seventh consecutive month in February.
Also Thursday, preliminary data showed that consumer price inflation in the euro zone rose by a seasonally adjusted 2.7% last month, up from 2.6% in January.
Sentiment on the single currency remained fragile after the European Central Bank allotted EUR529.5 billion in three-year loans to banks in its second long-term refinancing operation on Wednesday, as concerns over the long-term effectiveness of the liquidity boost weighed.
The pound remained supported after data showed the manufacturing sector in the U.K. grew in February, albeit at a slightly slower-than-forecast pace, adding to hopes that the sector will fuel overall economic growth in the first quarter.
The euro was slightly higher against the U.S. dollar, with EUR/USD easing up 0.13% to hit 1.3341.
Also Thursday, European Union leaders were to hold the first day of a two-day summit meeting in Brussels. Ahead of the meeting, euro zone finance misters were expected to hold talks to discuss whether Greece has fulfilled the required conditions to secure its second bailout.
Forexpros
