FX: Euro halts rally vs. pound, falling from 4-day high
Forex Pros – The euro halted a recent rally against the pound on Tuesday, falling from a 4-day high ahead of a meeting between U.S. President Barack Obama and Greek Prime Minister George Papandreou over Greece's debt crisis.
During early European trade, EUR/GBP stopped its rally at 0.9097, the pair's highest rate since last Wednesday. The pair subsequently retreated to consolidate around 0.9052 during European afternoon trade, gaining 0.02%.
EUR/GBP was likely to find support at 0.8981, Friday's low, and resistance at 0.9149, last Monday's high and a 3-month high.
Earlier in the day, official data showed that Britain's deficit on trade in goods widened on a monthly basis in January, defying forecasts.
Meanwhile, Papandreou said ahead of his talks with Obama that the United States cannot afford to ignore the financial woes of his country and, by extension, Europe.
The prime minister also warned on Monday that if the turmoil in Greece “metastasizes” it “could create a new global financial crisis with implications as grave as the U.S.-originated crisis two years ago.”
