Investing.com - The pound edged higher against the U.S. dollar on Monday, but gains were limited as concerns over political turmoil in Greece and the consequences of a potential Greek exit from the euro zone weighed on risk sentiment.
GBP/USD hit 1.6093 during U.S. morning trade, the daily high; the pair subsequently consolidated at 1.6090, edging up 0.12%.
Cable was likely to find support at 1.6008, the low of April 14 and resistance at 1.6133, the high of April 23.
Market sentiment weakened amid growing speculation that Greece may exit the euro zone, as talks aimed at forming a coalition government remained at an impasse.
The deadlock fueled fears that a fresh round of elections is becoming inevitable and cast doubts over the country’s ability to uphold its fiscal commitments.
Meanwhile, concerns over the health of Spain’s banking system persisted, pushing the yield on Spanish 10-year bonds to 6.27%, the highest level since December, after an auction of government bonds earlier saw the country’s short-term borrowing costs rise.
Adding to the bearish sentiment, official data showed that industrial production in the euro zone unexpectedly declined 0.3% in March, against expectations for a 0.4% increase, fuelling fears over the health of the region’s economy.
Elsewhere, the pound was trading at a three-and-a-half year high against the euro with EUR/GBP shedding 0.72%, to hit 0.7981.
Also Monday, European Union finance ministers were set to hold talks in Brussels, while Greece’s president was due to hold last-ditch cross party talks in an attempt to avert fresh elections.
GBP/USD hit 1.6093 during U.S. morning trade, the daily high; the pair subsequently consolidated at 1.6090, edging up 0.12%.
Cable was likely to find support at 1.6008, the low of April 14 and resistance at 1.6133, the high of April 23.
Market sentiment weakened amid growing speculation that Greece may exit the euro zone, as talks aimed at forming a coalition government remained at an impasse.
The deadlock fueled fears that a fresh round of elections is becoming inevitable and cast doubts over the country’s ability to uphold its fiscal commitments.
Meanwhile, concerns over the health of Spain’s banking system persisted, pushing the yield on Spanish 10-year bonds to 6.27%, the highest level since December, after an auction of government bonds earlier saw the country’s short-term borrowing costs rise.
Adding to the bearish sentiment, official data showed that industrial production in the euro zone unexpectedly declined 0.3% in March, against expectations for a 0.4% increase, fuelling fears over the health of the region’s economy.
Elsewhere, the pound was trading at a three-and-a-half year high against the euro with EUR/GBP shedding 0.72%, to hit 0.7981.
Also Monday, European Union finance ministers were set to hold talks in Brussels, while Greece’s president was due to hold last-ditch cross party talks in an attempt to avert fresh elections.