Investing.com - The pound dipped against the U.S. dollar on Tuesday, but remained close to Monday’s 13-day high as risk appetite was dented after talks aimed at restructuring Greece’s debt stalled.
GBP/USD hit 1.5538 during European morning trade, the daily low; the pair subsequently consolidated at 1.5561, slipping 0.03%.
Cable was likely to find support at 1.5449, last Friday’s low and resistance at 1.5628, the high of January 5.
On Monday, euro zone finance ministers rejected demands by Greece’s creditors that new bonds to be issued in exchange for their existing Greek bonds will carry an interest rate of 4%.
Greece stated that it was not willing to pay a rate of more than 3.5%, a position which the European Union and the International Monetary Fund supports.
The restructuring agreement is a precondition for Athens to receive its next tranche of bailout funds in order to avert a default when an EUR14.4 billion bond redemption comes due on March 20.
But market sentiment remained supported after preliminary data showed that manufacturing activity in the single currency bloc rose at the fastest pace since August this month, easing concerns over the impact of the region’s debt crisis on the economy.
Meanwhile, service sector activity in the euro zone accelerated to a five-month high in January.
The pound was lower against the euro, with EUR/GBP rising 0.32% to hit 0.8386.
Later Tuesday, the U.K. was to publish official data on public sector borrowing, while Bank of England Governor Mervyn King was also due to speak.
Elsewhere, EU finance ministers were to hold discussions in Brussels throughout the day.
GBP/USD hit 1.5538 during European morning trade, the daily low; the pair subsequently consolidated at 1.5561, slipping 0.03%.
Cable was likely to find support at 1.5449, last Friday’s low and resistance at 1.5628, the high of January 5.
On Monday, euro zone finance ministers rejected demands by Greece’s creditors that new bonds to be issued in exchange for their existing Greek bonds will carry an interest rate of 4%.
Greece stated that it was not willing to pay a rate of more than 3.5%, a position which the European Union and the International Monetary Fund supports.
The restructuring agreement is a precondition for Athens to receive its next tranche of bailout funds in order to avert a default when an EUR14.4 billion bond redemption comes due on March 20.
But market sentiment remained supported after preliminary data showed that manufacturing activity in the single currency bloc rose at the fastest pace since August this month, easing concerns over the impact of the region’s debt crisis on the economy.
Meanwhile, service sector activity in the euro zone accelerated to a five-month high in January.
The pound was lower against the euro, with EUR/GBP rising 0.32% to hit 0.8386.
Later Tuesday, the U.K. was to publish official data on public sector borrowing, while Bank of England Governor Mervyn King was also due to speak.
Elsewhere, EU finance ministers were to hold discussions in Brussels throughout the day.