Forex - GBP/USD erases losses as risk aversion eases
Investing.com
Published Jun 20, 2011 10:27AM ET
GBP/USD pulled back up from a daily low of 1.6110, to hit 1.6204 during early U.S. trade, easing up 0.05%.
Cable was likely to find short-term support at 1.6077, last Thursday’s low and an almost one-month low and short-term resistance at 1.6224, the high of the same day.
Demand for higher yielding assets was curtailed earlier, after euro zone finance ministers said Sunday that Greece will get the next round of its existing bailout package in early July, if it can pass new spending and economic reforms by the end of the month.
Also Monday, U.K. property website Rightmove said house prices in England and Wales were likely to rise overall in 2011.
Rightmove said that that house prices would finish 2011 with an annual gain of 2.0%, in contrast to its December forecast for a 2.5% fall.
The report said house asking prices rose 0.6% in June after a 1.3% rise in May, reaching their highest level since an all-time high hit in May 2008.
The pound was also higher against the euro, with EUR/GBP slipping 0.11% to hit 0.8828.
With no major economic events scheduled for release on Monday, markets turned their focus to the U.S. Federal Reserve’s policy setting meeting later in the week, where it was expected to reaffirm its pledge to hold interest rates near zero for an extended period.
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Written By: Investing.com
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