Forex - EUR/GBP eases off 5-month high, rate outlook supports
Investing.com
Published Apr 14, 2011 05:25AM ET
EUR/GBP hit 0.8849 during European morning trade, the pair’s lowest since Tuesday; the pair subsequently consolidated at 0.8855, shedding 0.25%.
The pair was likely to find support at 0.8821, Tuesday’s low and resistance at 0.8923, Wednesday’s high and a five-month high.
Earlier in the day, Nationwide Building Society said its consumer confidence index rose to 44 from 39 in February. The February number was revised up 1 point, but it was still the lowest in the survey's history.
Nationwide's chief economist Robert Gardner noted that consumer morale remained very downbeat even after the March rebound and the index was well off its long-term average of 80.
"We will need to see a succession of increases before we can say that confidence has returned anywhere close to pre-recession levels," he said.
Meanwhile, the euro was higher against the U.S. dollar, with EUR/USD rising 0.20% to hit 1.4472.
Also Thursday, in its monthly bulletin the European Central Bank maintained its hawkish stance, warning that it sees "upside risks" to price stability and will continue to monitor inflation "very closely."
"It is essential that the recent price developments do not give rise to broad-based inflationary pressures over the medium term," the ECB said.
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Written By: Investing.com
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