Investing.com - The pound was little changed against the U.S. dollar on Wednesday, as market sentiment continued to be dominated by concerns that political turmoil in Greece could result in the county’s eventual exit from the euro zone.
GBP/USD hit 1.6128 during European morning trade, the session low; the pair subsequently consolidated at 1.6144, dipping 0.08%.
Cable was likely to find support at 1.6080, the low of April 25 and resistance at 1.6198, Tuesday’s high.
Concerns over Greece’s future in the single currency bloc mounted on Tuesday after Alexis Tsipras, the head of Greece’s second-biggest party Syriza, declared that Greece's financial aid package is null and void, and called for a moratorium on Greek debt payments.
Tsipras was to hold talks with Greece’s leading political parties later in the day, as attempts to form a government continue, but if talks fail a second round of elections will have to be held.
Investors were also fearful that French president-elect Francois Hollande’s focus on growth rather than austerity measures as a means to tackle the euro zone’s debt crisis could spark tensions with Germany.
The pound was trading close to a three-and-a-half year low against the euro, with EUR/GBP slipping 0.10% to hit 0.8040.
Also Wednesday, official data showed that German exports and imports both hit record highs in March, fuelling hopes that the euro zone’s largest economy is weathering the effects of the debt crisis.
The Federal Statistics Office said exports increased by 0.9% to EUR91.8 billion, while imports rose 1.2% to EUR78.1 billion.
GBP/USD hit 1.6128 during European morning trade, the session low; the pair subsequently consolidated at 1.6144, dipping 0.08%.
Cable was likely to find support at 1.6080, the low of April 25 and resistance at 1.6198, Tuesday’s high.
Concerns over Greece’s future in the single currency bloc mounted on Tuesday after Alexis Tsipras, the head of Greece’s second-biggest party Syriza, declared that Greece's financial aid package is null and void, and called for a moratorium on Greek debt payments.
Tsipras was to hold talks with Greece’s leading political parties later in the day, as attempts to form a government continue, but if talks fail a second round of elections will have to be held.
Investors were also fearful that French president-elect Francois Hollande’s focus on growth rather than austerity measures as a means to tackle the euro zone’s debt crisis could spark tensions with Germany.
The pound was trading close to a three-and-a-half year low against the euro, with EUR/GBP slipping 0.10% to hit 0.8040.
Also Wednesday, official data showed that German exports and imports both hit record highs in March, fuelling hopes that the euro zone’s largest economy is weathering the effects of the debt crisis.
The Federal Statistics Office said exports increased by 0.9% to EUR91.8 billion, while imports rose 1.2% to EUR78.1 billion.