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Forex - GBP/USD rises on Greece optimism

Published 02/13/2012, 03:47 AM
GBP/USD
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EUR/GBP
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Investing.com - The pound rose against the U.S. dollar on Monday, tracking the euro’s gains as investor confidence strengthened after Greece’s parliament approved fresh austerity measures ahead of a key meeting of European ministers later in the week.

GBP/USD hit 1.5821 during European morning trade, the daily high; the pair subsequently consolidated at 1.5821, gaining 0.42%.

Cable was likely to find support at 1.5749, the low of February 3 and resistance at 1.5882, the high of February 1.

Sentiment was lifted after Greek lawmakers approved on Sunday a set of austerity measures needed to secure a second bailout package.

The measures include steep cuts in private-sector wages, sacking 15,000 public-sector workers and drumming up a further EUR3 billion in government-spending cuts this year alone.

However, Greece must still find a further EUR325 million of spending cuts and give binding assurances the plan will be implemented before Wednesday when euro zone finance ministers meet to decide on a new EUR130 billion bailout.

Meanwhile, sterling was lower against the euro with EUR/GBP adding 0.17%, to hit 0.8391.

Investors were also eyeing a slew of debt auctions later in the week by Italy, Spain and France, as the sales will be considered as a gauge of investor confidence in the euro zone high-yielding sovereign debts.


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