Shutterstock photo
Markets

Forex - EUR/GBP hits 5-day low after Moody’s downgrade Spain

Shutterstock photo

Shutterstock photo

Forex Pros - The euro slipped to a five-day low against the pound on Thursday, after ratings agency Moody's cut Spain's government-bond rating and following a report showing that manufacturing activity in the U.K. rose at its fastest pace in 10 months in January.

EUR/GBP hit 0.8548 during European morning trade, the pair's lowest since March 3; the pair subsequently consolidated at 0.8559, shedding 0.28%.

The pair was likely to find support at 0.8478, the low of March 3 and resistance at 0.8604, Wednesday's high.

Earlier in the day, Moody's downgraded Spain's sovereign debt to Aa2 from Aa1 with a negative outlook and warned of further cuts, saying plans to bail out the country's banking sector will cost more than the government had expected.

The downgrade added to pressure on the single currency, amid renewed concerns over the sovereign debt levels of peripheral euro zone nations.

Also Thursday, the U.K. Office for National Statistics said manufacturing output rose 1.0% in January, more than reversing a 0.1% fall in December, and the strongest rate of growth since March 2010. Analysts had expected an increase of 0.8%.

The euro was also down against the U.S. dollar, with EUR/USD shedding 0.51% to hit 1.3834.

Later in the day, the Bank of England's Monetary Policy Committee was to announce its official bank rate.

Forex News

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

ForEx

Latest Markets Videos