EUR/GBP rallies after EU bank plan

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EUR/GBP rallies after EU bank plan

FITITOL--> FXstreet.com (San Francisco) - The EUR/GBP pair has jumped during Friday’s Asian session after European leaders unveiled a plan to address the region’s distressed banking sector.

The gains came after the pairing hit a four-week low on Tuesday, weighed by jitters ahead of a two-day European leaders’ summit.

European Commission President Herman van Rompuy and other EU leaders announced a plan for a single financial supervisor for the region, which will involve the European Central Bank with the possibility of direct recapitalization for European banks.

EUR/GBP traded as high as 0.8085 before pulling back to current levels in the 0.8060 area, up from 0.8016 at the end of trading in New York.

In the European session ahead, key risk even for GBP will be BoE Governor King’s speech at 09:30 GMT, when markets will be looking for hints of further easing ahead of the MPC’s monetary policy announcement next Thursday.