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Forex - EUR/GBP pares gains ahead of critical Greek vote

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Forexpros - The euro pared gains against the pound on Wednesday, pulling back from an eight-week high, ahead of a vote in Greece's parliament on adopting a national austerity package.

EUR/GBP pulled away from 0.9012, the pair's highest since May 5, to hit 0.8984 during European morning trade, up just 0.03% on the day.

The pair was likely to find support at 0.8927, Tuesday's low and resistance at 0.9041, the high of May 5 and a 14-month high.

The euro remained supported amid rising optimism that Greece's parliament would approve an unpopular austerity plan later in the day. The plan needed to pass for the indebted nation to secure a EUR12 billion tranche of bailout funds from the European Union and International Monetary Fund.

The single currency was also boosted after European Central Bank President Jean-Claude Trichet said Tuesday that the bank was in "strong vigilance mode," signaling a possible rate hike when the bank meets on July 7.

Meanwhile, the pound remained under pressure amid speculation that the Bank of England could resume its quantitative easing program as some policymakers believed the outlook for growth remained weak.

The euro also trimmed gains against the U.S. dollar, with EUR/USD easing up 0.09% to hit 1.4384.

Earlier Wednesday, official data showed that U.K. net lending rose slightly more-than-expected in May, while mortgage approvals rose in line with expectations.

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

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