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Forex - Stronger euro jumps to 15-month high against pound

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Forexpros - The euro jumped to a 15-month high against the pound on Thursday, lifted higher by a relief rally as Greece's parliament moved closer to securing its next tranche of bailout loans and avoiding a sovereign debt default.

EUR/GBP hit 0.9069 during European morning trade, the pair's highest since March 17, 2010; the pair subsequently consolidated at 0.9060, surging 0.81%.

The pair was likely to find support at 0.8927, Tuesday's low and resistance at 0.9149, the high of March 1, 2010.

On Wednesday, the Greek parliament voted to accept the EUR28.4 billion, five-year austerity package needed to secure a EUR12 billion tranche of bailout funds from the European Union and International Monetary Fund.

There was to be a second vote later Thursday on the implementation of different parts of the package, such as tax rises and the sale of state assets.

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

In contrast, Bank of England Governor Mervyn King played down prospects for an imminent rate increase earlier this week, amid speculation that that bank may resort to further quantitative easing.

The euro was also higher against the U.S. dollar, with EUR/USD rising 0.36% to hit 1.4487.

Earlier in the day, reports showed that consumer confidence in the U.K. fell in June, while U.K. house prices were flat.

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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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