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Forex - EUR/GBP slips from 5-week high amid fresh euro debt worries

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Forex Pros - The euro eased off a five-week high against the pound on Tuesday, as concerns about euro zone sovereign debt resurfaced, overshadowing expectations that the European Central Bank will raise rates ahead of the Federal Reserve.

EUR/GBP hit 0.8592 during European afternoon trade, the daily low; the pair subsequently consolidated at 0.8609, sliding 0.12%.

The pair was likely to find support at 0.8563, last Friday's low and resistance at 0.8635, the day's high and a five-week high.

Concerns over Greek sovereign debt saw the gap between yields on Greek and German government bonds widen. On Monday, ratings agency Moody's downgraded Greece's sovereign rating by three notches.

Meanwhile, the single currency shrugged off robust German factory data. Manufacturing orders rose more-than-expected in January, up 2.9%, amid strong domestic demand. Orders from the 17-country euro zone rose 2.3%, a sign that the recovery in the currency bloc is continuing.

The euro was also lower against the U.S. dollar, with EUR/USD shedding 0.51% to hit 1.3897.

Earlier Tuesday, industry data showed that U.K. retail sales fell in February, while a separate report showed that house prices continued to drop during the month.

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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.


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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