EURGBP comes out from its one-month low


The euro came out from its one-month low against the pound today, thanks to a report showing that the U.K. service sector grew at the slowest pace in nearly two years in October. However, the gains were capped by worries over a Greek austerity vote.

The currency pair EURGBP moved away from 0.7985, which is the absolute bottom for it since October 2, headed to 0.8010 during the European late morning trade.

The pair is supposed to find support at 0.7985, and resistance at 0.8027, which was the highest level from Friday.

The U.K. services purchasing managers index fell to 50.6 in October from a reading of 52.2 in September. Analysts supposed that the index will go down to 52.0.

The report showed growth of new business eased during the month, forcing companies to decrease backlogs of work.

The unexpected data caused concerns over the outlook for the economic recovery and spread uncertainty over the possibility of more easing by the Bank of England.

The euro remained under pressure, due to investors concerns over Greece’s Parliament approval a package of spending cuts and tax hikes. Besides, their attention was focused on the outcome of Tuesday’s American presidential elections..

The euro was lower against the U.S. dollar and the yen, with EURUSD trading to 1.2794 and EURJPY falling to 102.68.

Today, the Institute of Supply Management is expected to show data on U.S. service sector activity.


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