Investing.com - The pound dipped against the U.S. dollar on Monday as uncertainty over political instability in Italy weighed on market sentiment, following the Italian prime minister's decision to resign.
GBP/USD hit 1.6014 during European morning trade, the session low; the pair subsequently consolidated at 1.6036, dipping 0.04%.
Cable was likely to find support at 1.5961, the low of November 28 and near-term resistance at 1.6060, Friday’s high.
On Saturday, Italian Prime Minister Mario Monti announced that he will resign as soon as he has passed the 2013 budget, after members of former Prime Minister Silvio Berlusconi’s party withdrew their support for the government.
The announcement came after Silvio Berlusconi said that he intends to run again for prime minister, fuelling fears that a change in political leadership will hamper the country’s efforts to exit the debt crisis.
The dollar remained supported after Friday’s stronger-than-forecast U.S. jobs data, but expectations that the Federal Reserve will continue to pursue monetary easing at this week’s policy setting meeting remained intact.
Sterling hit a more than two-week high against the broadly weaker euro, with EUR/GBP slipping 0.13% to 0.8047.
Also Monday, official data showed that Italian industrial production fell 1.1% in October, compared to expectations for a 0.2% decline.
GBP/USD hit 1.6014 during European morning trade, the session low; the pair subsequently consolidated at 1.6036, dipping 0.04%.
Cable was likely to find support at 1.5961, the low of November 28 and near-term resistance at 1.6060, Friday’s high.
On Saturday, Italian Prime Minister Mario Monti announced that he will resign as soon as he has passed the 2013 budget, after members of former Prime Minister Silvio Berlusconi’s party withdrew their support for the government.
The announcement came after Silvio Berlusconi said that he intends to run again for prime minister, fuelling fears that a change in political leadership will hamper the country’s efforts to exit the debt crisis.
The dollar remained supported after Friday’s stronger-than-forecast U.S. jobs data, but expectations that the Federal Reserve will continue to pursue monetary easing at this week’s policy setting meeting remained intact.
Sterling hit a more than two-week high against the broadly weaker euro, with EUR/GBP slipping 0.13% to 0.8047.
Also Monday, official data showed that Italian industrial production fell 1.1% in October, compared to expectations for a 0.2% decline.