Investing.com - The pound edged higher against the U.S. dollar on Tuesday, but gains were limited as the lack of progress in talks to help restructure Greek sovereign debt weighed on investor confidence.
GBP/USD hit 1.5594 during U.S. morning trade, the daily high; the pair subsequently consolidated at 1.5584, adding 0.11%.
Cable was likely to find support at 1.5516, Monday’s low and resistance at 1.5628, the high of January 5.
On Monday, euro zone finance ministers said Greece’s creditors would have to accept lower interest rates on new bonds to be issued to replace their existing holdings as part of the debt restructuring.
Markets were jittery after ratings agency Standard & Poor’s said it was likely to put Greece into "selective default" once negotiations on the restructuring deal have concluded.
Meanwhile, the pound was weighed by ongoing speculation that the Bank of England may implement fresh easing measures to shore up the economy as the effects of harsh government austerity cuts and the debt crisis in Europe continue to create a drag on growth.
Earlier Tuesday, official data showed that U.K. public sector net borrowing rose less-than-expected in December, but total outstanding debt rose above GBP1 trillion for the first time on record.
The pound was higher against the euro with EUR/GBP declining 0.35%, to hit 0.8330.
Later in the day, BoE Governor Mervyn King was to speak; his comments would be closely watched for any clues to the future possible direction of monetary policy.
GBP/USD hit 1.5594 during U.S. morning trade, the daily high; the pair subsequently consolidated at 1.5584, adding 0.11%.
Cable was likely to find support at 1.5516, Monday’s low and resistance at 1.5628, the high of January 5.
On Monday, euro zone finance ministers said Greece’s creditors would have to accept lower interest rates on new bonds to be issued to replace their existing holdings as part of the debt restructuring.
Markets were jittery after ratings agency Standard & Poor’s said it was likely to put Greece into "selective default" once negotiations on the restructuring deal have concluded.
Meanwhile, the pound was weighed by ongoing speculation that the Bank of England may implement fresh easing measures to shore up the economy as the effects of harsh government austerity cuts and the debt crisis in Europe continue to create a drag on growth.
Earlier Tuesday, official data showed that U.K. public sector net borrowing rose less-than-expected in December, but total outstanding debt rose above GBP1 trillion for the first time on record.
The pound was higher against the euro with EUR/GBP declining 0.35%, to hit 0.8330.
Later in the day, BoE Governor Mervyn King was to speak; his comments would be closely watched for any clues to the future possible direction of monetary policy.