Investing.com – The pound erased losses against the U.S. dollar on Monday, rebounding from the session low as risk appetite was bolstered by speculation that Italian Prime Minister Silvio Berlusconi may be about to step down.
GBP/USD rebounded from 1.5980, the session low, to hit 1.6050 during European early afternoon trade, easing up 0.10%.
Cable was likely to find support at 1.5915, the low of November 2 and short-term resistance at 1.6092, the high of November 1.
Risk aversion eased as Italian borrowing costs eased off earlier record highs, following Italian media reports that Prime Minister Berlusconi is about to step down amid mounting opposition from within his own party, ahead of a parliamentary vote on public finances on Tuesday.
But concerns over the outlook for the U.K. economy continued to weigh after industry data showed that U.K. house prices rose more-than-expected last month, but fell slightly over the three months to October.
The Halifax house price index rose 1.2% in October compared with a month earlier and was 1.8% lower from a year earlier. Analysts had forecast prices would rise 0.1% on the month and decline 2.3% year-on-year.
Home prices fell 0.3% from the previous three months, the report said.
The pound was also slightly higher against the euro, with EUR/GBP shedding 0.35% to hit 0.8571.
Later in the day, euro zone finance ministers were to meet to discuss the latest developments in Greece as well as how to implement summit decision reached by euro zone nations late last month.
GBP/USD rebounded from 1.5980, the session low, to hit 1.6050 during European early afternoon trade, easing up 0.10%.
Cable was likely to find support at 1.5915, the low of November 2 and short-term resistance at 1.6092, the high of November 1.
Risk aversion eased as Italian borrowing costs eased off earlier record highs, following Italian media reports that Prime Minister Berlusconi is about to step down amid mounting opposition from within his own party, ahead of a parliamentary vote on public finances on Tuesday.
But concerns over the outlook for the U.K. economy continued to weigh after industry data showed that U.K. house prices rose more-than-expected last month, but fell slightly over the three months to October.
The Halifax house price index rose 1.2% in October compared with a month earlier and was 1.8% lower from a year earlier. Analysts had forecast prices would rise 0.1% on the month and decline 2.3% year-on-year.
Home prices fell 0.3% from the previous three months, the report said.
The pound was also slightly higher against the euro, with EUR/GBP shedding 0.35% to hit 0.8571.
Later in the day, euro zone finance ministers were to meet to discuss the latest developments in Greece as well as how to implement summit decision reached by euro zone nations late last month.