Euro moves away from high against sterling

Following a statement from Germany’s Finance Minister about the unlikelihood of bond spreads being targeted by the European Central Bank, the euro eased away from a high session against the sterling today. A dip of 0.09% saw EUR/GBP finish at 0.7851 in morning trade after briefly reaching 0.7872.

Friday’s high of 0.7876 was quoted as the most likely short-term resistance, while the two were expected to find near-term support at the low of 15 August, 0.7823. The rise in the euro came after a German magazine reported that the next policy meeting of the ECB in September could see the interest rate threshold for euro-area sovereign debt purchases set. This would in turn activate the ECB’s bond buying programme, but the organisation has refused to comment on the report.

A number of important meetings across the Eurozone will have investors on the edge of their seats this week. On Wednesday, for example, Greek Prime Minister Antonis Samaras is expected to meet with Luxemburg Prime Minister Jean-Claude Juncker to discuss an extension of Greece’s economic reform programme.

GBP remains supported today thanks to positive data from the UK last week that suggests the economy may be in better shape than previously thought. Policymakers at the Bank of England did not discuss an interest rate cut at this month’s meeting, and retail sales saw a surprise jump in July.