Investing.com - The pound extended losses against the U.S. dollar on Monday, sliding to a fresh session low as concerns over the future of international bailouts for the euro zone weighed on demand for riskier assets.
GBP/USD hit 1.5837 during European afternoon trade, the session low; the pair subsequently consolidated at 1.5848, slipping 0.14%.
Cable was likely to find support at 1.5789, the low of February 17 and resistance at 1.5900, the session high and an almost three-week high.
Market sentiment was hit after a weekend meeting of Group of 20 nations postponed a decision on increasing the resources of the International Monetary Fund in order to assist the euro zone and said any decision on outside help will be conditional upon on European governments increasing the size of the region’s debt firewall.
Germany has remained opposed to enlarging the size of the European Stability Mechanism, the permanent euro zone bailout fund that is to become active this year.
Risk appetite was also dented as the recent rally in oil prices fanned concerns that higher prices could create a drag on the global economic recovery and overshadowed optimism about a liquidity boosting operation by the European Central Bank, set to take place on Wednesday.
The pound was higher against the euro, with EUR/GBP shedding 0.25% to hit 0.8452.
Later in the day, Germany’s parliament was to vote on Greece’s second bailout, which was already approved by euro zone finance ministers last week. Meanwhile, the U.S. was to publish industry data on pending home sales.
GBP/USD hit 1.5837 during European afternoon trade, the session low; the pair subsequently consolidated at 1.5848, slipping 0.14%.
Cable was likely to find support at 1.5789, the low of February 17 and resistance at 1.5900, the session high and an almost three-week high.
Market sentiment was hit after a weekend meeting of Group of 20 nations postponed a decision on increasing the resources of the International Monetary Fund in order to assist the euro zone and said any decision on outside help will be conditional upon on European governments increasing the size of the region’s debt firewall.
Germany has remained opposed to enlarging the size of the European Stability Mechanism, the permanent euro zone bailout fund that is to become active this year.
Risk appetite was also dented as the recent rally in oil prices fanned concerns that higher prices could create a drag on the global economic recovery and overshadowed optimism about a liquidity boosting operation by the European Central Bank, set to take place on Wednesday.
The pound was higher against the euro, with EUR/GBP shedding 0.25% to hit 0.8452.
Later in the day, Germany’s parliament was to vote on Greece’s second bailout, which was already approved by euro zone finance ministers last week. Meanwhile, the U.S. was to publish industry data on pending home sales.