Forex - GBP/USD trims losses as euro zone contagion fears ease
Investing.com
Published Jul 12, 2011 10:33AM ET
GBP/USD clawed back up from 1.5781, the pair’s lowest since January 26; to hit 1.5895 during early U.S. trade, down 0.06% on the day.
Cable was likely to find support at 1.5781, the days low and resistance at 1.6041, Monday’s high.
Earlier in the day, Reuters reported that EU leaders are preparing to hold an emergency summit meeting on Friday after finance ministers acknowledged that some form of Greek default may be necessary in order to put the country’s debt on a more sustainable footing and prevent contagion to Italy and Spain.
Also Tuesday, official data showed that consumer price inflation in the U.K. declined unexpectedly in June, the first decline in the index in the month of June since 2003.
The Office for National Statistics said consumer prices fell 0.1% last month, taking the annual inflation rate to 4.2%.
The worse-than-expected data saw investors trim back expectations for a near-term rate hike by the Bank of England.
But the pound was higher against the euro, with EUR/GBP shedding 0.24% to hit 0.8798.
Later in the day, the Federal Reserve was to publish the minutes of its June policy-setting meeting.
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Written By: Investing.com
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