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Forex - GBP/USD near session highs on Greece deal hopes

Published 12/03/2012, 04:56 AM
GBP/USD
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EUR/GBP
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Investing.com - The pound was trading close to session highs against the U.S. dollar on Monday, after Greece announced the details of a debt buyback scheme, while U.K. data showed that manufacturing activity improved in November.

GBP/USD hit 1.6057 during European morning trade, the session high; the pair subsequently consolidated at 1.6047, gaining 0.23%.

Cable was likely to find support at 1.5988, Friday’s low and resistance at 1.6132, the high of November 2.

Market sentiment was boosted after Greece launched a scheme to buy back its debt from private investors, as part of an agreement to unlock a new bailout package worth EUR44 billion.

Earlier Monday, final data showed that China’s HSBC manufacturing purchasing managers’ index came in at 50.5 in November from 49.5 in October, indicating that economic activity is picking up.

In the U.K., data showed that the manufacturing PMI rose to 49.1 last month, its highest level since August, from October's downwardly revised 47.3 and beating expectations for a reading of 48.1.

However, the index remained below the 50.0 level which separates contraction from expansion for the seventh successive month.

Sterling was trading close to a five-week low against the euro, with EUR/GBP up 0.23% to 0.8127.

Euro zone finance ministers were to hold talks in Brussels later in the day to discuss the terms of the new aid deal for Greece, after Germany’s parliament gave it the green light on Friday.

In addition, the Institute of Supply Management was to produce a report on manufacturing activity in the U.S.



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