Forex - GBP/USD eases off 5-month low but gains limited
Investing.com
Published Jun 27, 2011 10:32AM ET
GBP/USD pulled away from 1.5914, the pair’s lowest since January 31, to hit 1.5982 during early U.S. trade, easing up 0.15%.
Cable was likely to find support at 1.5819, the low of January 31 and resistance at 1.6046, Friday’s high.
Over the weekend, French lenders proposed a plan to reinvest half of the proceeds from maturing Greek government bonds into new 30-year Greek bonds.
Greece’s Prime Minister George Papandreou needs to secure parliamentary approval for a EUR28.4 billion, five-year austerity package on Wednesday, in order to access a EUR12 billion bailout from the European Union and the International Monetary Fund.
But the pound remained under pressure amid speculation that the Bank of England may embark on further quantitative easing after the minutes of the bank’s June meeting showed that some policymakers believed the growth outlook had weakened.
Meanwhile, the pound was down against the euro, with EUR/GBP climbing 0.40% to hit 0.8928.
Earlier Monday, official data showed that U.S. personal spending was unexpectedly flat in May as automobile sales declined, while personal income rose broadly in line with expectations.
The report said the core personal consumption expenditure index rose 0.3% in May, the largest gain since October 2009.
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Written By: Investing.com
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