Investing.com – The pound erased losses against the U.S. dollar on Monday, pulling away from the daily low but sterling remained vulnerable amid concerns that the feeble U.K. economy could prompt the Bank of England to implement more monetary easing.
GBP/USD pulled back from 1.5431, the daily low, to hit 1.5474 during early European trade, rising 0.18%.
Cable was likely to find support at 1.5330, Friday’s low and a one-year low and short-term resistance at 1.5518, last Thursday’s high.
Sterling remained under pressure after last week’s minutes of the BoE’s September meeting indicated that policymakers are leaning towards implementing more monetary easing, possibly as early as next month.
Meanwhile, fears over the ongoing debt crisis in the euro zone continued to weigh on risk appetite after weekend meetings of leaders from the G-20 nations and the International Monetary Fund resulted in no fresh measures to tackle the issue.
Germany’s deputy finance minister Joerg Asmussen said Sunday that a decision on Greece’s next tranche of aid was unlikely to be made at a meeting on October 3rd as previously expected, because a report by the IMF, European Central Bank and European Commission has been delayed.
The pound was also higher against the euro, with EUR/GBP shedding 0.64% to hit 0.8683.
Later in the day, BoE Monetary Policy Committee member Ben Broadbent was to speak, while the U.S. was to produce government data on new home sales.
GBP/USD pulled back from 1.5431, the daily low, to hit 1.5474 during early European trade, rising 0.18%.
Cable was likely to find support at 1.5330, Friday’s low and a one-year low and short-term resistance at 1.5518, last Thursday’s high.
Sterling remained under pressure after last week’s minutes of the BoE’s September meeting indicated that policymakers are leaning towards implementing more monetary easing, possibly as early as next month.
Meanwhile, fears over the ongoing debt crisis in the euro zone continued to weigh on risk appetite after weekend meetings of leaders from the G-20 nations and the International Monetary Fund resulted in no fresh measures to tackle the issue.
Germany’s deputy finance minister Joerg Asmussen said Sunday that a decision on Greece’s next tranche of aid was unlikely to be made at a meeting on October 3rd as previously expected, because a report by the IMF, European Central Bank and European Commission has been delayed.
The pound was also higher against the euro, with EUR/GBP shedding 0.64% to hit 0.8683.
Later in the day, BoE Monetary Policy Committee member Ben Broadbent was to speak, while the U.S. was to produce government data on new home sales.