Investing.com - The pound was lower against the broadly stronger U.S. dollar on Monday, as renewed concerns over the ongoing debt crisis in the euro zone and worries over prospects for global growth bolstered demand for the safety of the greenback.
GBP/USD hit 1.6189 during European morning trade, the pair’s lowest since Thursday; the pair subsequently consolidated at 1.6195, shedding 0.19%.
Cable was likely to find support at 1.6142, the low of September 14 and resistance at 1.6249, the session high.
Market sentiment was hit after a report showed that Germany’s Ifo business confidence index deteriorated to the lowest level since March 2010 this month, amid ongoing concerns over euro zone’s debt crisis.
The German Ifo business climate index fell to 101.4 from 102.3 in August, the fifth monthly decline in a row, compared to expectations for a reading of 102.5.
Meanwhile, uncertainty over whether Spain will request a full scale sovereign bailout weighed.
On Thursday Madrid is to present its draft budget for next year and announce structural reforms, while the results of bank stress tests are due on Friday. In addition, ratings agency Moody’s is expected to complete a ratings review on Spain later this week.
Over the weekend, Spain’s economy minister said the country would not rush to seek external financial aid, as pressure mounted on Spain to seek a bailout.
Sterling was higher against the euro, with EUR/GBP down 0.37% to 0.7968.
Greece remained a concern to investors after its finance ministry dismissed German media reports that the country's budget shortfall could be as much as EUR20 billion, almost twice as much as previously thought.
GBP/USD hit 1.6189 during European morning trade, the pair’s lowest since Thursday; the pair subsequently consolidated at 1.6195, shedding 0.19%.
Cable was likely to find support at 1.6142, the low of September 14 and resistance at 1.6249, the session high.
Market sentiment was hit after a report showed that Germany’s Ifo business confidence index deteriorated to the lowest level since March 2010 this month, amid ongoing concerns over euro zone’s debt crisis.
The German Ifo business climate index fell to 101.4 from 102.3 in August, the fifth monthly decline in a row, compared to expectations for a reading of 102.5.
Meanwhile, uncertainty over whether Spain will request a full scale sovereign bailout weighed.
On Thursday Madrid is to present its draft budget for next year and announce structural reforms, while the results of bank stress tests are due on Friday. In addition, ratings agency Moody’s is expected to complete a ratings review on Spain later this week.
Over the weekend, Spain’s economy minister said the country would not rush to seek external financial aid, as pressure mounted on Spain to seek a bailout.
Sterling was higher against the euro, with EUR/GBP down 0.37% to 0.7968.
Greece remained a concern to investors after its finance ministry dismissed German media reports that the country's budget shortfall could be as much as EUR20 billion, almost twice as much as previously thought.