Midweek losses for the English monetary unit were driven by optimism about euro zone leaders' capacity to arrive at an accord with the European Financial Stability Facility during Wednesday meetings in Brussels. The second official summit in four days will see leaders convene to continue working on resolving the sovereign debt crisis, though finance ministers having cancelled their attendance chilled some observers, analysts and strategists.
"If we don't get any solution, there's going to be a devastating effect. The euro's going to collapse through $1.35 levels and I think the pound is going to get dragged down too," market strategist Elizabeth Gregory with Swissquote Bank told Bloomberg.
The past 90 days have seen the euro gain 2 percent when compared to the region's single currency, which cuts the past year's losses to about 3.3 percent.
RTT News reports a growing sense of doubt was spreading regarding how substantive the meeting will be without the attendance of finance ministers to chime in on the debt scourge.
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