Investing.com - The pound extended losses against the U.S. dollar on Tuesday, tracking losses in the euro amid concerns that an agreement on a second bailout for Greece will not be enough to resolve the country’s deep seated financial issues.
GBP/USD hit 1.5792 during European afternoon trade, the pair’s lowest since Friday; the pair subsequently consolidated at 1.5820, shedding 0.18%.
Cable was likely to find support at 1.5789, Friday’s low and resistance at 1.5904, the high of February 7 and an almost three-month high.
Market sentiment firmed up after euro zone finance ministers agreed the details of a new financial package for Greece, which will reduce the country’s debt to 120.5% of gross domestic product by 2020.
Private-sector creditors also agreed to take a write-down on their bonds of 53.5%, more than the 50% write-down that had been conceded before the meeting, which is expected to cut Greece's debt by EUR107 billion.
But investors remained wary amid concerns that a general election in Greece, which is expected to take place in April, could result in problems implementing the terms of the package.
Meanwhile, a report on the sustainability of Greece’s debt by the Troika, which is composed of the European Union, European Central Bank and the International Monetary Fund, said that "additional debt relief" will be required in the future.
But sterling remained supported after official data showed that U.K. public finances recorded their largest monthly surplus since January 2008 last month.
Public sector net borrowing or the difference in value between public spending and income swung to a surplus of GBP10.7 billion in January, from a deficit of GBP11.1 billion the previous month.
The pound was fractionally lower against the euro, with EUR/GBP inching up 0.05% to hit 0.8358.
Finance ministers from the euro zone were scheduled to continue talks in Brussels throughout the day on Tuesday.
GBP/USD hit 1.5792 during European afternoon trade, the pair’s lowest since Friday; the pair subsequently consolidated at 1.5820, shedding 0.18%.
Cable was likely to find support at 1.5789, Friday’s low and resistance at 1.5904, the high of February 7 and an almost three-month high.
Market sentiment firmed up after euro zone finance ministers agreed the details of a new financial package for Greece, which will reduce the country’s debt to 120.5% of gross domestic product by 2020.
Private-sector creditors also agreed to take a write-down on their bonds of 53.5%, more than the 50% write-down that had been conceded before the meeting, which is expected to cut Greece's debt by EUR107 billion.
But investors remained wary amid concerns that a general election in Greece, which is expected to take place in April, could result in problems implementing the terms of the package.
Meanwhile, a report on the sustainability of Greece’s debt by the Troika, which is composed of the European Union, European Central Bank and the International Monetary Fund, said that "additional debt relief" will be required in the future.
But sterling remained supported after official data showed that U.K. public finances recorded their largest monthly surplus since January 2008 last month.
Public sector net borrowing or the difference in value between public spending and income swung to a surplus of GBP10.7 billion in January, from a deficit of GBP11.1 billion the previous month.
The pound was fractionally lower against the euro, with EUR/GBP inching up 0.05% to hit 0.8358.
Finance ministers from the euro zone were scheduled to continue talks in Brussels throughout the day on Tuesday.