Investing.com - The pound erased gains against the U.S. dollar on Monday, falling to a six-week low as market sentiment waned ahead of a meeting of euro zone finance ministers amid sustained concerns over Greece’s debt crisis.
GBP/USD pulled back from 1.5696, the daily high, to hit 1.5631 during European afternoon trade, shedding 0.27%.
Cable was likely to find support at 1.5578, the low of January 4 and resistance at 1.5707, the high of December 23.
Investors were eyeing a meeting of euro zone finance ministers in Brussels later in the day, to give their final approval to a EUR130 billion bailout for Greece.
Ministers were likely to discuss Spain as well, after Prime Minister Mariano Rajoy announced earlier this month that the country would cut its public deficit to 5.8% of annual output, instead of the planned 4.4% this year.
Sentiment was also weighed after the International Swaps and Derivatives Association said on Friday that Greece’s debt swap constituted a “credit event” that would activate credit-default swaps, which designed to protect investors against losses on Greek sovereign debt.
Meanwhile, the greenback remained supported after Friday’s upbeat U.S. employment data dampened expectations for a fresh round of asset purchases by the Federal Reserve to help stimulate growth.
The Department of Labor said the U.S. economy added 227,000 jobs in February, beating expectations for a 210,000 gain. The unemployment rate held steady at a three year low of 8.3%.
Elsewhere, sterling was lower against the euro with EUR/GBP rising 0.25%, to hit 0.8393.
Later in the day, the U.S. was to publish government data on the federal budget balance.
GBP/USD pulled back from 1.5696, the daily high, to hit 1.5631 during European afternoon trade, shedding 0.27%.
Cable was likely to find support at 1.5578, the low of January 4 and resistance at 1.5707, the high of December 23.
Investors were eyeing a meeting of euro zone finance ministers in Brussels later in the day, to give their final approval to a EUR130 billion bailout for Greece.
Ministers were likely to discuss Spain as well, after Prime Minister Mariano Rajoy announced earlier this month that the country would cut its public deficit to 5.8% of annual output, instead of the planned 4.4% this year.
Sentiment was also weighed after the International Swaps and Derivatives Association said on Friday that Greece’s debt swap constituted a “credit event” that would activate credit-default swaps, which designed to protect investors against losses on Greek sovereign debt.
Meanwhile, the greenback remained supported after Friday’s upbeat U.S. employment data dampened expectations for a fresh round of asset purchases by the Federal Reserve to help stimulate growth.
The Department of Labor said the U.S. economy added 227,000 jobs in February, beating expectations for a 210,000 gain. The unemployment rate held steady at a three year low of 8.3%.
Elsewhere, sterling was lower against the euro with EUR/GBP rising 0.25%, to hit 0.8393.
Later in the day, the U.S. was to publish government data on the federal budget balance.