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Forex - Sterling drops to 1-month lows in risk-off trade

Published 07/08/2015, 05:52 AM
Pound hits 1-month trough against dollar as Greece worries weigh
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Investing.com - The pound dropped to one-month lows against the U.S. dollar on Wednesday, as investors remained cautious after euro zone officials gave the country until Thursday to present new proposals to secure a deal with creditors.

GBP/USD hit 1.5390 during European morning trade, the pair's lowest since June 10; the pair subsequently consolidated at 1.5406, sliding 0.36%.

Cable was likely to find support at 1.5255, the low of June 9 and resistance at 1.5609, Tuesday's high.

Markets were jittery as the euro zone had expected Greece to submit fresh plans on Tuesday after its voters rejected a deal in a referendum, but no new proposals were tabled.

European Council President Donald Tusk said this was now the "most critical moment in the history of the euro zone".

A meeting of all 28 members of the European Union was also scheduled for Sunday - a day after the new Greek proposals are expected to be discussed by euro zone finance ministers.

In the U.K., data on Wednesday showed that house prices rose 1.7% last month, beating expectations for an uptick of 0.2%. House prices rose by 0.3% in May, whose figure was revised from a previously estimated fall of 0.1%.

Market participants were eyeing the U.K. Treasury's Annual Budget Release due later in the day.

Sterling was also lower against the euro, with EUR/GBP advancing 0.67% to 0.7168.

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