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Forex - GBP/USD remains lower amid Greece talks

Published 11/26/2012, 10:22 AM
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Investing.com - The pound remained lower against the U.S. dollar on Monday, as uncertainty over whether European leaders will soon come to an agreement on a financial aid deal for Greece continued to weigh on market sentiment.

GBP/USD hit 1.6000 during U.S. morning trade, the daily low; the pair subsequently consolidated at 1.6004, slipping 0.15%.

Cable was likely to find support at 1.5928, the low of November 23 and resistance at 1.6093, the high of October 29.

Markets were jittery ahead of a meeting of euro zone finance ministers later in the day to discuss whether to release Greece’s next tranche of aid.

German Chancellor Angela Merkel said she believes a deal can be reached at Monday’s talks, while the French finance minister said over the weekend that an agreement is close.

Sentiment also remained under pressure after separatist parties in Spain’s Catalonia region won the majority of the public vote in elections held over the weekend.

The win underlined fears about a potential negative impact on the euro zone’s fourth largest economy, as Catalonia accounts for nearly 20% of economic activity and provides the most tax revenue to the central government.

Elsewhere, sterling was lower against the euro with EUR/GBP adding 0.14%, to hit 0.8106.

Also Monday, research group Gfk said that its index of Germany’s consumer climate fell to 5.9 in November from a reading of 6.1 the previous month, whose figure was revised down from 6.3.

Analysts had expected Gfk consumer climate to fall to 6.2 this month.


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