Investing.com - The euro pushed higher against the pound on Tuesday, as uncertainty over when Spain may request a bailout persisted, while weak economic data underlined concerns over the outlook for the U.K. recovery.
EUR/GBP hit 0.8001 during European morning trade, the session high; the pair subsequently consolidated at 0.8000, gaining 0.14%.
The pair was likely to find support at 0.7941, Monday’s low and resistance at 0.8045, the high of September 20.
Sentiment on the euro remained fragile after Reuters reported Monday that Spain may be preparing to request a bailout as early as next weekend, but Germany is urging Madrid to wait.
In the U.K., a report showed that construction sector activity improved modestly in September, but remained in contraction territory for the second consecutive month.
The Markit/CIPS construction purchasing managers' index ticked up to 49.5 last month from a reading of 49.0 in August, but came in just below expectations for a reading of 49.8.
The data came after a report by mortgage lender Nationwide said house prices in the U.K. unexpectedly fell by 0.4% in September and are now 1.4% lower than in the same month last year.
Risk appetite remained supported after data on Monday showed that U.S. manufacturing activity expanded in September for the first time in four months, easing concerns over a slowdown in global growth.
The euro was higher against the U.S. dollar and the yen, with EUR/USD up 0.23% to 1.2918 and EUR/JPY rising 0.42% to 100.93.
On Monday, data showed that manufacturing activity in the U.K. fell deeper into contraction territory in September, increasing the likelihood that the Bank of England may extend its program of economic stimulus measures.
EUR/GBP hit 0.8001 during European morning trade, the session high; the pair subsequently consolidated at 0.8000, gaining 0.14%.
The pair was likely to find support at 0.7941, Monday’s low and resistance at 0.8045, the high of September 20.
Sentiment on the euro remained fragile after Reuters reported Monday that Spain may be preparing to request a bailout as early as next weekend, but Germany is urging Madrid to wait.
In the U.K., a report showed that construction sector activity improved modestly in September, but remained in contraction territory for the second consecutive month.
The Markit/CIPS construction purchasing managers' index ticked up to 49.5 last month from a reading of 49.0 in August, but came in just below expectations for a reading of 49.8.
The data came after a report by mortgage lender Nationwide said house prices in the U.K. unexpectedly fell by 0.4% in September and are now 1.4% lower than in the same month last year.
Risk appetite remained supported after data on Monday showed that U.S. manufacturing activity expanded in September for the first time in four months, easing concerns over a slowdown in global growth.
The euro was higher against the U.S. dollar and the yen, with EUR/USD up 0.23% to 1.2918 and EUR/JPY rising 0.42% to 100.93.
On Monday, data showed that manufacturing activity in the U.K. fell deeper into contraction territory in September, increasing the likelihood that the Bank of England may extend its program of economic stimulus measures.