Forex - GBP/USD hits 5-month low as risk aversion escalates
Investing.com
Published Jun 27, 2011 04:08AM ET
GBP/USD hit 1.5914 during early European trade, the pair’s lowest since January 31; the pair subsequently consolidated at 1.5936, slipping 0.12%.
Cable was likely to find support at 1.5819, the low of January 31 and resistance at 1.6046, Friday’s high.
Greece’s Prime Minister George Papandreou must secure parliamentary backing for a EUR28.4 billion austerity package on Wednesday, in order to in order to receive a second tranche of bailout loans from the European Union and International Monetary Fund and avert a sovereign debt default.
The pound was also weaker after last week’s minutes of the Bank of England’s June meeting showed that some policymakers believed additional monetary stimulus may be necessary.
In contrast, Federal Reserve policymakers said last week that the bank was winding up its monetary easing program at the end of this month.
Meanwhile, the pound was higher against the euro, with EUR/GBP slipping 0.25% to hit 0.8869.
Later in the day, the U.S. was to publish official data on personal earnings and expenditure as well as data on the consumer price index.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.