Forex - Euro rises against pound after weak U.K. PMI
Investing.com
Published Oct 04, 2011 07:27AM ET
EUR/GBP hit 0.8586 during European early afternoon trade, the daily high; the pair subsequently consolidated at 0.8572, gaining 0.41%.
The pair was likely to find support at 0.8527, Monday’s low and a three-week low and resistance at 0.8632, Monday’s high.
The Markit/CIPS construction purchasing managers’ index dropped to 50.1 in September from 52.6 the previous month, its lowest reading since December 2010, as demand in the housing market remained sluggish.
Analysts had expected the index to decline to 51.6 in September.
The weak data added to expectations that the BoE may resume its asset purchasing program, possibly as early as this week, to bolster the flagging U.K. economy.
But the euro’s gains were limited as concerns over the impact of a possible default by Greece on the global economy mounted after European finance ministers postponed a decision on the release of Greece’s next tranche of aid until a meeting on October 17.
The euro remained close to an eight-and-a-half month low against the U.S. dollar, easing up 0.14% to hit 1.3194.
Later in the day, euro zone finance ministers were to meet in Brussels to discuss the implementation of a permanent euro zone bailout facility.
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Written By: Investing.com
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