Investing.com - The pound edged higher against the U.S. dollar on Monday, as market sentiment was lifted by hopes for a resolution to the U.S. fiscal cliff, but gains were limited amid persistent concerns over the euro zone.
GBP/USD hit 1.5923 during European morning trade, the pair’s highest since November 9; the pair subsequently consolidated at 1.5898, inching up 0.10%.
Cable was likely to find support at 1.5834, Friday’s low and resistance at 1.6018, the high of November 9.
Market sentiment was bolstered after U.S. Congressional leaders said talks with President Barack Obama on Friday to avert the fiscal cliff, a combination of automatic tax increases and spending cuts due to come into effect from January, were "constructive."
But concerns over the euro zone persisted after official data showed that Italian industrial orders tumbled by 4.0% in September compared with the previous month.
A separate report showed that the level of loans in arrears in Spanish banks rose to a record 10.7% in September.
Investors were looking ahead to a meeting of the euro group of euro zone finance ministers on Tuesday to discuss unlocking Greece’s next tranche of financial aid.
Sentiment on sterling remained weak after the Bank of England raised its forecast for short-term inflation last week and said growth would remain sluggish.
The pound was fractionally lower against the euro, with EUR/GBP inching up 0.09% to 0.8031.
Later Monday, the U.S. was to release an industry report on existing home sales.
GBP/USD hit 1.5923 during European morning trade, the pair’s highest since November 9; the pair subsequently consolidated at 1.5898, inching up 0.10%.
Cable was likely to find support at 1.5834, Friday’s low and resistance at 1.6018, the high of November 9.
Market sentiment was bolstered after U.S. Congressional leaders said talks with President Barack Obama on Friday to avert the fiscal cliff, a combination of automatic tax increases and spending cuts due to come into effect from January, were "constructive."
But concerns over the euro zone persisted after official data showed that Italian industrial orders tumbled by 4.0% in September compared with the previous month.
A separate report showed that the level of loans in arrears in Spanish banks rose to a record 10.7% in September.
Investors were looking ahead to a meeting of the euro group of euro zone finance ministers on Tuesday to discuss unlocking Greece’s next tranche of financial aid.
Sentiment on sterling remained weak after the Bank of England raised its forecast for short-term inflation last week and said growth would remain sluggish.
The pound was fractionally lower against the euro, with EUR/GBP inching up 0.09% to 0.8031.
Later Monday, the U.S. was to release an industry report on existing home sales.