Investing.com - The pound extended gains against the U.S. dollar on Monday, climbing to a fresh two-week high as risk appetite sharpened after Greece finalized an auction to determine the payout on credit default swaps.
GBP/USD hit 1.5904 during U.S. morning trade, the pair’s highest since March 2; the pair subsequently consolidated at 1.5892, gaining 0.31%.
Cable was likely to find support at 1.5820, the session low and resistance at 1.5965, the high of March 2.
Greece's old bonds were valued at 21.5% of their face value, meaning that CDS contracts will pay out 78.5 cents in the euro.
The CDS auction was triggered after Greece’s private sector creditors were forced to exchange their bonds in a debt swap that cut the value of Greek debt holdings by 53.5% earlier this month.
Elsewhere, the euro zone’s permanent bailout fund, the European Financial Stability Facility announced earlier that its first offering of 20-year bonds will be conducted at a lower price than initially planned, further boosting market sentiment.
Sterling was also supported by mounting expectations that Wednesday’s annual U.K. budget will contain business-friendly tax adjustments, which would bolster economic growth.
The U.K. was also to release official data on consumer inflation, one day ahead of the minutes from the BoE’s March policy meeting on Wednesday, which could indicate if policymakers are considering another round of economic stimulus.
The pound was lower against the euro, with EUR/GBP adding 0.21% to hit 0.8333.
In the U.S., Federal Reserve Bank of New York President William Dudley said earlier that recent economic data indicated that the economic recovery may be gaining traction, but said that the central bank would continued to be guided by data when making future monetary policy decisions.
GBP/USD hit 1.5904 during U.S. morning trade, the pair’s highest since March 2; the pair subsequently consolidated at 1.5892, gaining 0.31%.
Cable was likely to find support at 1.5820, the session low and resistance at 1.5965, the high of March 2.
Greece's old bonds were valued at 21.5% of their face value, meaning that CDS contracts will pay out 78.5 cents in the euro.
The CDS auction was triggered after Greece’s private sector creditors were forced to exchange their bonds in a debt swap that cut the value of Greek debt holdings by 53.5% earlier this month.
Elsewhere, the euro zone’s permanent bailout fund, the European Financial Stability Facility announced earlier that its first offering of 20-year bonds will be conducted at a lower price than initially planned, further boosting market sentiment.
Sterling was also supported by mounting expectations that Wednesday’s annual U.K. budget will contain business-friendly tax adjustments, which would bolster economic growth.
The U.K. was also to release official data on consumer inflation, one day ahead of the minutes from the BoE’s March policy meeting on Wednesday, which could indicate if policymakers are considering another round of economic stimulus.
The pound was lower against the euro, with EUR/GBP adding 0.21% to hit 0.8333.
In the U.S., Federal Reserve Bank of New York President William Dudley said earlier that recent economic data indicated that the economic recovery may be gaining traction, but said that the central bank would continued to be guided by data when making future monetary policy decisions.