Investing.com - The pound was down against the U.S. dollar on Monday, amid caution ahead of a European Union summit later in the day and after Friday’s slightly weaker-than-expected data on U.S. fourth quarter economic growth.
GBP/USD hit 1.5654 during European morning trade, the daily low; the pair subsequently consolidated at 1.5652, shedding 0.46%.
Cable was likely to find support at 1.5531, the low of January 25 and resistance at 1.5733, the session high and an almost five-week high.
Market sentiment was hit after official data on Friday showed that U.S. gross domestic product expanded by 2.8% in the three months to December, the fastest quarterly rate in one-and-a-half years, but slightly below expectations for an increase of 3%.
Meanwhile, delays in negotiations between Greece and its private creditors on a debt swap deal also weighed on risk appetite.
An agreement is necessary for Greece to secure its next tranche of bailout funds in order to avoid a default when a EUR14.5 billion bond repayment comes due on March 20.
Later in the day, EU leaders were meet in Brussels, where they were expected to sign off on the implementation of the European Stability Mechanism, a EUR500 billion permanent euro zone bailout find, as well as a pact aimed at enforcing deficit control measures in the region.
Elsewhere, the pound was higher against the euro, with EUR/GBP slipping 0.21% to hit 0.8387.
Also Monday, Italy was to auction as much as EUR8 billion in long term government debt, after the country received a two-notch downgrade from Fitch’s on Friday.
GBP/USD hit 1.5654 during European morning trade, the daily low; the pair subsequently consolidated at 1.5652, shedding 0.46%.
Cable was likely to find support at 1.5531, the low of January 25 and resistance at 1.5733, the session high and an almost five-week high.
Market sentiment was hit after official data on Friday showed that U.S. gross domestic product expanded by 2.8% in the three months to December, the fastest quarterly rate in one-and-a-half years, but slightly below expectations for an increase of 3%.
Meanwhile, delays in negotiations between Greece and its private creditors on a debt swap deal also weighed on risk appetite.
An agreement is necessary for Greece to secure its next tranche of bailout funds in order to avoid a default when a EUR14.5 billion bond repayment comes due on March 20.
Later in the day, EU leaders were meet in Brussels, where they were expected to sign off on the implementation of the European Stability Mechanism, a EUR500 billion permanent euro zone bailout find, as well as a pact aimed at enforcing deficit control measures in the region.
Elsewhere, the pound was higher against the euro, with EUR/GBP slipping 0.21% to hit 0.8387.
Also Monday, Italy was to auction as much as EUR8 billion in long term government debt, after the country received a two-notch downgrade from Fitch’s on Friday.