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Forex - GBP/USD almost unchanged as investors eye Italy

Published 11/07/2011, 10:30 AM
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Investing.com - The pound was steady against the U.S. dollar on Monday, as risk aversion eased amid ongoing uncertainty over the outcome of Italy's political woes.

GBP/USD pulled back from 1.5980, the daily low to hit 1.6033 during U.S. morning trade, easing down 0.01%

Cable was likely to find support at 1.5945, the low of November 5 and resistance at 1.6165, the high of October 31.

The pound tracked the euro's gains as Italian borrowing costs eased off earlier record highs, following Italian media reports that Prime Minister Berlusconi is about to step down amid mounting opposition from within his own party, ahead of a parliamentary vote on public finances on Tuesday.

But concerns over the outlook for the U.K. economy continued to weigh after industry data showed that U.K. house prices rose more-than-expected last month, but fell slightly over the three months to October.

The Halifax house price index rose 1.2% in October compared with a month earlier and was 1.8% lower from a year earlier. Analysts had forecast prices would rise 0.1% on the month and decline 2.3% year-on-year.

Home prices fell 0.3% from the previous three months, the report said.

Meanwhile, the pound was also up against the euro with EUR/GBP edging down 0.12%, to trade at 0.8591.

Also Monday, Greece’s Finance Minister Evangelos Venizelos held “a positive and productive discussion” with European Union Economic and Monetary Affairs Commissioner Olli Rehn, to discuss the disbursement of Greece’s next tranche of financial aid.

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