Investing.com - The pound edged higher against the U.S. dollar on Monday, but gains were limited as sustained euro zone debt concerns persisted, while investors eyed the outcome of a meeting of the region’s finance ministers set to begin later in the day.
GBP/USD hit 1.5514 during U.S. morning trade, the daily high; the pair subsequently consolidated at 1.5505, edging up 0.11%.
Cable was likely to find support at 1.5428, the low of June 7 and resistance at 1.5562, the high of June 14.
Market sentiment remained under pressure as European Central Bank President Mario Draghi reiterated comments made last week following the bank’s decision to cut its benchmark interest rate to a record low of 0.75%, saying that economic indicators for the second quarter point to weakening growth in the euro zone.
The comments came as the yield on Spain’s 10-year government bonds climbed to 7.11% earlier, well above the 6% threshold, widely seen as unsustainable, ahead of a meeting of euro zone finance ministers later Monday.
Euro zone officials were expected to discuss a plan announced last month and designed to help the region’s indebted countries and their struggling banking systems.
Meanwhile, concerns over the outlook for global growth persisted after disappointing economic reports from the U.S. and China.
Official data on Friday showed that the U.S. economy added just 80,000 jobs in June, below market expectations for a gain of around 90,000. It was the third consecutive month where hiring failed to top the 100,000-level.
In China, government data released earlier Monday showed that consumer price inflation accelerated at the slowest rate since January 2010 in June. Premier Wen Jiabao said over the weekend that China’s economy faces “relatively large” downward pressure in the near-term.
Elsewhere, sterling was trading close to a three-and-a-half year high, with EUR/GBP falling 0.14%, to hit 0.7922.
Also Monday, data showed that investor confidence in the euro zone for July deteriorated to the lowest level since July 2009, remaining in negative territory for the 12th consecutive month.
Sentix research group said its index of investor confidence declined to minus 29.6 in July from June’s reading of minus 28.9.
GBP/USD hit 1.5514 during U.S. morning trade, the daily high; the pair subsequently consolidated at 1.5505, edging up 0.11%.
Cable was likely to find support at 1.5428, the low of June 7 and resistance at 1.5562, the high of June 14.
Market sentiment remained under pressure as European Central Bank President Mario Draghi reiterated comments made last week following the bank’s decision to cut its benchmark interest rate to a record low of 0.75%, saying that economic indicators for the second quarter point to weakening growth in the euro zone.
The comments came as the yield on Spain’s 10-year government bonds climbed to 7.11% earlier, well above the 6% threshold, widely seen as unsustainable, ahead of a meeting of euro zone finance ministers later Monday.
Euro zone officials were expected to discuss a plan announced last month and designed to help the region’s indebted countries and their struggling banking systems.
Meanwhile, concerns over the outlook for global growth persisted after disappointing economic reports from the U.S. and China.
Official data on Friday showed that the U.S. economy added just 80,000 jobs in June, below market expectations for a gain of around 90,000. It was the third consecutive month where hiring failed to top the 100,000-level.
In China, government data released earlier Monday showed that consumer price inflation accelerated at the slowest rate since January 2010 in June. Premier Wen Jiabao said over the weekend that China’s economy faces “relatively large” downward pressure in the near-term.
Elsewhere, sterling was trading close to a three-and-a-half year high, with EUR/GBP falling 0.14%, to hit 0.7922.
Also Monday, data showed that investor confidence in the euro zone for July deteriorated to the lowest level since July 2009, remaining in negative territory for the 12th consecutive month.
Sentix research group said its index of investor confidence declined to minus 29.6 in July from June’s reading of minus 28.9.