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Forex - EUR/GBP trims losses but remains under pressure

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Forexpros - The euro pared losses against the pound on Monday, pulling away from a two-day low but the shared currency remained under pressure amid concerns that the euro zone's debt crisis will deepen if Greece rejects a new austerity package.

EUR/GBP pulled back from 0.8858, the pair's lowest since last Thursday, to hit 0.8883 during European late morning trade, still down 0.09% on the day.

The pair was likely to find support at 0.8824, the low of June 21 and resistance at 0.8925, last Friday's high.

Greek Prime Minister George Papandreou needs to get parliamentary approval for a EUR28.4 billion austerity package on Wednesday, in order to avert a sovereign debt default by securing a EUR12 billion bailout from the European Union and the International Monetary Fund.

The pound was weighed by speculation that the Bank of England may embark on further quantitative easing after the minutes of the bank's June meeting showed that some policymakers believed the growth outlook had weakened.

Meanwhile, the euro edged higher against the U.S. dollar, with EUR/USD easing up 0.16% to hit 1.4211.

On Sunday, Greece's deputy Prime Minister Theodoros Pangalos warned that the Greek parliament may block some of the economic reforms, but added that lawmakers will probably approve an overall austerity package to stave off a default.

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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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