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Forex - Pound slips vs. dollar on sovereign debt fears

Published 03/15/2010, 04:28 AM
GBP/USD
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GBP/JPY
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Investing.com – The pound slipped against the U.S. dollar on Monday, ending a 2-day rally on sovereign debt fears after Moody's warned that Britain had moved "substantially" closer to losing its AAA credit rating.

During early European trade, GBP/USD slid to 1.5134, shedding 0.41%.

Cable was likely to find support at 1.4781, the low of Feb. 3 and a 10-month low, and resistance at 1.5575, the high of Feb. 23.

Sterling also fell versus the yen, with GBP/JPY dropping 0.49% to hit 137.17.

Earlier in the day, Bloomberg quoted Pierre Cailleteau, managing director of sovereign risk at Moody’s in London, as saying that that the U.K. and U.S. governments must balance bringing down their debt burdens without damaging growth by removing fiscal stimulus too quickly.

Also Monday, an industry group said that British home sellers raised asking prices by the smallest amount for March ever recorded as the supply of available properties increased.

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