Forex - GBP/USD dips as dollar firms on Europe woes

Published 01/22/2012, 10:27 PM
Updated 01/22/2012, 10:35 PM
GBP/USD
-
EUR/GBP
-
GBP/JPY
-
Investing.com - The pound fell against the dollar as the greenback surged against most major currencies on fears that fresh hurdles have gone up along Europe's road to recovery.

GBP/USD hit 1.5549 in Asian trading on Monday, down 0.18% and up from a session low of 1.5529 and off from a high of 1.5565.

The pair was likely to find support 1.5451, Friday's low, and resistance at 1.5578, Friday's high.

Greece has been negotiating debt restructuring terms with its private creditors but a deal has yet to be reached, which fueled demand for dollars in Monday trading as a safe haven play.

Furthermore in Australia, producer price inflation rose less than expected in the fourth quarter of 2011, climbing to a seasonally adjusted 0.3%, from 0.6% in the preceding quarter, according to the Australian Bureau of Statistics.

Markets had been expecting a gain of 0.4%.

With many Asian countries closed for the Lunar New Year holiday, the dollar became the currency of choice early in Monday's session.

Meanwhile, the pound was up against the euro and down against the yen, with EUR/GBP falling 0.13% and trading at 0.8291and GBP/JPY falling 0.12% to 119.80.

Later Monday, the Conference Board will release its Australian leading index, which will shed further light on the health of the economy.

The U.S. Federal Open Market Committee meets Wednesday and even if the monetary policy body doesn't change interest rates, talk ahead of the meeting regarding possible accommodative policies such as a third round of quantitative easing could weaken the dollar and send other currencies rising.

European consumer confidence numbers come out on Monday, while the Bank of Japan will tentatively hold a monetary policy meeting as well.

Later Monday, Canada is to publish its index of leading economic indicators, a good weather vane for the economy over the coming months.






Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.