Forex - EUR/GBP pares gains ahead of EBC press conference

Forex Pros – The euro pared gains against the pound on Thursday, pulling back from the daily high, ahead of a policy setting meeting and key press conference by the European Central Bank later in the day.

EUR/GBP pulled back from 0.8915 the daily high, to hit 0.8894 during European morning trade, up just 0.05% on the day.

The pair was likely to find support at 0.8844, the low of June 6 and resistance at 0.8975, Wednesday’s high and a one-month high.

The euro softened after an economic advisor to German Chancellor Angel Merkel said earlier that it is only a matter of time before Greece’s debt is restructured.

The ECB was not expected to increase its benchmark interest rate later Thursday, but bank head Jean-Claude Trichet was widely expected to signal that the bank would raise its minimum bid rate in July. The bank bumped up its key interest rate to 1.25% from 1% in April amid rising consumer prices.

Meanwhile, official data showed earlier that the U.K. trade deficit narrowed slightly more-than-expected in April, driven by a sharp fall imports of consumer goods, while exports held broadly steady.

The euro was also higher against the U.S. dollar, with EUR/USD rising 0.21% to hit 1.4614.

Also Thursday, the Bank of England was to hold its policy setting meeting, where it was widely expected to hold rates steady at a record low of 0.5%.

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