Investing.com - The pound added to losses against the U.S. dollar on Monday, falling to a fresh two-month low as sentiment remained on the back foot amid growing uncertainty surrounding Greece’s bailout plan.
GBP/USD hit 1.5866 during European afternoon trade, the pair's lowest since September 5; the pair subsequently consolidated at 1.5874, down 0.14%.
Cable was likely to find support at 1.5826, the low of September 5 and resistance at 1.5943, the high of September 6.
Investors were jittery as euro zone finance ministers were to meet in Brussels later in the day to discuss whether to release a new tranche of funding to Greece.
Ahead of the meeting, German Finance Minister Wolfgang Schauble told a German newspaper that he did not expect a conclusion to be reached Monday.
Greece’s government approved a budget of spending cuts and tax increases for next year on Sunday, just days after the parliament narrowly approved a EUR13.5 billion austerity package required to secure the country’s next installment of financial aid.
Without the next aid installment, Greece risks default on November 16, when Athens must repay EUR5 billion of debts.
Investors also remained concerned over the looming “fiscal cliff” in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.
Meanwhile, sterling was also lower against the euro with EUR/GBP adding 0.23% to hit 0.8014.
Later Monday, German Chancellor Angela Merkel was to travel to Lisbon to hold talks with Portuguese political leaders, amid public opposition to the country’s austerity cuts.
GBP/USD hit 1.5866 during European afternoon trade, the pair's lowest since September 5; the pair subsequently consolidated at 1.5874, down 0.14%.
Cable was likely to find support at 1.5826, the low of September 5 and resistance at 1.5943, the high of September 6.
Investors were jittery as euro zone finance ministers were to meet in Brussels later in the day to discuss whether to release a new tranche of funding to Greece.
Ahead of the meeting, German Finance Minister Wolfgang Schauble told a German newspaper that he did not expect a conclusion to be reached Monday.
Greece’s government approved a budget of spending cuts and tax increases for next year on Sunday, just days after the parliament narrowly approved a EUR13.5 billion austerity package required to secure the country’s next installment of financial aid.
Without the next aid installment, Greece risks default on November 16, when Athens must repay EUR5 billion of debts.
Investors also remained concerned over the looming “fiscal cliff” in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.
Meanwhile, sterling was also lower against the euro with EUR/GBP adding 0.23% to hit 0.8014.
Later Monday, German Chancellor Angela Merkel was to travel to Lisbon to hold talks with Portuguese political leaders, amid public opposition to the country’s austerity cuts.