Forex Pros – The pound tumbled to a 3-month low against the euro on Monday, amid hopes that euro zone nations would bail out debt-stricken Greece and fears that an upcoming general election in Britain would be inconclusive.
During European late morning trade, EUR/GBP shot up to 0.9149, its highest rate since Oct. 26 last year; the pair subsequently hovered around 0.9106, gaining 1.79%.
The pair was likely to find resistance at 0.9239, the high of Oct. 26, and support at 0.8966, the daily low.
Sterling also plunged against the dollar and yen: GBP/USD sank 2.66% to hit 1.4837 and GBP/JPY dropped 2.3% to hit 132.43.
A YouGov poll in the Sunday Times showed the lead of Britain's opposition Conservative party had fallen to just two points. It put the Tories on 37%, with Labour on 35% and the Liberal Democrats on 17%.
The poll was followed by a disappointing report on Monday from the Bank of England, which said British mortgage approvals fell more than expected in January.
Also Monday, the Wall Street Journal quoted Greek officials and other sources as saying that a plan led by Germany and France to bail out debt-laden Greece with aid of as much as EUR 30 billion has begun taking shape, but the timing and terms of any rescue remain unclear.
Meanwhile, official data showed earlier in the day that the unemployment rate in the euro zone remained stable unexpectedly during January.
