Forex - GBP/USD off 8-month low but gains limited
Investing.com
Published Sep 19, 2011 04:07AM ET
GBP/USD retreated from1.5685, the pair’s lowest since January 12, to hit 1.5728 during early European trade, still down 0.39%.
Cable was likely to find support at 1.5685, the days low and resistance at 1.5814, the high of September 14.
Concerns over the debt crisis in the euro zone intensified after European Union finance ministers warned over the weekend that they may withhold Greece’s next tranche of bailout aid if Athens fails to meet deficit reduction targets.
Later in the day, officials from the EU and the International Monetary Fund were to hold talks with Greek Finance Minister Evangelos Venizelos to discuss extra steps to ensure Athens can qualify for its next tranche of rescue funds.
Meanwhile, the pound remained under pressure amid speculation that the BoE may resort to fresh monetary stimulus measures to shore up growth after a recent slew of soft economic data underlined fears over the fragile U.K. economy.
The pound was also weighed by concerns over the exposure of U.K. lenders to euro zone sovereign debt.
Elsewhere, the pound was higher against the euro, with EUR/GBP shedding 0.46% to hit 0.8699.
Also Monday, the BoE’s quarterly bulletin said the bond-purchase plan it implemented between March 2009 and early 2010 had an “economically significant” effect on Britain’s financial system, but said the impact of future purchases may differ.
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Written By: Investing.com
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