Forex - GBP/USD eases off daily low but risks remain
Investing.com
Published Sep 20, 2011 07:32AM ET
GBP/USD pulled back from 1.5656, the daily low, to hit 1.5693 during European afternoon trade, still down 0.06%.
Cable was likely to find support at 1.5631, Monday’s low and an eight-month trough and resistance at 1.5755, Monday’s high.
Market sentiment was boosted after Greece fully paid EUR769 million in bond coupons and after Japan’s prime minister said Tokyo was open to buying more bonds issued by the euro zone bailout fund, in an effort to support and stabilize European markets.
But concerns over a possible Greek default lingered after talks to discuss whether Greece can access its next tranche of bailout funds ended Monday without reaching an agreement.
Greece’s finance minister said the discussions would continue late Tuesday, adding that some work still needed to be done.
Meanwhile, sentiment on the pound remained weak amid speculation that the BoE may resort to fresh monetary easing measures to stimulate growth after a recent slew of soft economic data added to concerns about the fragile U.K. economy.
Fears over the exposure of U.K. lenders to euro zone sovereign debt also weighed.
Elsewhere, the pound was also lower against the euro, with EUR/GBP inching up 0.05% to hit 0.8718.
Also Tuesday, investors were beginning to focus on the upcoming two-day meeting of the U.S. Federal Reserve, amid speculation that the central bank could implement fresh easing measures to shore up growth.
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Written By: Investing.com
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