Forex - GBP/USD weakens in wake of Europe impasse
Published Dec 11, 2011 11:18PM ET
GBP/USD was trading at 1.5638, down 0.21%.
The pair was likely to find support at 1.5611, Thursday's low, and resistance at 1.5658, Friday's high.
On Friday, Britain was the only country among the 27-member European Union to reject a new treaty that sought to coordinate fiscal policies in a more integrated fashion.
London said it could not agree to terms of the new treaty, which called for taxing trades in its financial markets.
Markets saw such a move as particularly hard on the Britain thanks to its deep and voluminous financial markets.
On Monday, the Treasury Department will release its latest budget figures, with market consensus forecasting a $138.0 billion deficit compared with a $98.5 billion shortfall in October.
On Tuesday, the Federal Reserve will hold its monthly monetary policy meeting, and although markets aren't expecting changes to the U.S. central bank's 0.25% benchmark interest rate target, language suggesting the U.S. economy is advancing or slowing its pace of recovery will affect the greenback's exchange rates with other currencies.
Also on Tuesday, British inflation figures will publish as well, with market talk seeing the consumer price index hovering around 4.8%, while in the United States, the Census Bureau will unveil its latest retail sales figures.
The pound was up against the euro, with EUR/GBP down 0.07% at 0.8535, and down against the yen, with GPB/JPY dipping 0.15% to 121.44
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