Pound gains versus euro, gilts drop

by Joe Oliver, Forex Trading-Pips

The British pound strengthened versus the euro on Tuesday after Fitch said European AAA nations are at risk of downgrades.  An earlier report showed UK house prices improved in May better than the consensus economists forecast. The pound is being perceived by investors as a relative safe haven from the euro crisis. Spanish 10 year yields increased to a euro-era record 6.834 percent after Fitch said the nation will “significantly’ miss budget deficit targets. Speculation is increasing that Spain may need a bailout.

 

EURGBP daily bars

EURGBP daily bars