Investing.com - The pound was higher against the U.S. dollar on Monday, rising to a 12-day high as market sentiment strengthened amid hopes of an agreement on terms for a Greek debt restructuring deal.
GBP/USD hit 1.5602 during U.S. morning trade, the pair’s highest since January 5; the pair subsequently consolidated at 1.5593, gaining 0.11%.
Cable was likely to find support at 1.5500, the low of January 3 and resistance at 1.5669, the high of January 3.
European Union finance ministers were holding talks in Brussels to discuss the terms of a proposed debt restructuring package for Greece, as well as the terms of a fiscal compact that was agreed upon in December.
Ahead of the talks, French Finance Minister Francois Baroin said a deal was taking shape.
The restructuring agreement is a precondition for Athens to receive its next tranche of bailout funds in order to avoid a default when an EUR14.4 billion bond redemption comes due on March 20.
On Sunday, Greece’s creditors said they had reached their maximum offer for a voluntary debt swop and said it was now up to the EU and the International Monetary Fund to agree on whether they can accept the deal.
But the pound’s gains were limited amid ongoing speculation that the Bank of England may announce fresh monetary easing measures as soon as next month, to stimulate growth in the faltering U.K. economy.
Sterling was lower against the euro with EUR/GBP adding 0.72%, to hit 0.8362.
Also Monday, IMF Managing Director Christine Lagarde said euro zone governments should incorporate the region’s exiting bailout fund, the European Financial Stability Fund, into the European Stability Mechanism, increasing the size of the permanent bailout fund in order to restore investor confidence in the region.
GBP/USD hit 1.5602 during U.S. morning trade, the pair’s highest since January 5; the pair subsequently consolidated at 1.5593, gaining 0.11%.
Cable was likely to find support at 1.5500, the low of January 3 and resistance at 1.5669, the high of January 3.
European Union finance ministers were holding talks in Brussels to discuss the terms of a proposed debt restructuring package for Greece, as well as the terms of a fiscal compact that was agreed upon in December.
Ahead of the talks, French Finance Minister Francois Baroin said a deal was taking shape.
The restructuring agreement is a precondition for Athens to receive its next tranche of bailout funds in order to avoid a default when an EUR14.4 billion bond redemption comes due on March 20.
On Sunday, Greece’s creditors said they had reached their maximum offer for a voluntary debt swop and said it was now up to the EU and the International Monetary Fund to agree on whether they can accept the deal.
But the pound’s gains were limited amid ongoing speculation that the Bank of England may announce fresh monetary easing measures as soon as next month, to stimulate growth in the faltering U.K. economy.
Sterling was lower against the euro with EUR/GBP adding 0.72%, to hit 0.8362.
Also Monday, IMF Managing Director Christine Lagarde said euro zone governments should incorporate the region’s exiting bailout fund, the European Financial Stability Fund, into the European Stability Mechanism, increasing the size of the permanent bailout fund in order to restore investor confidence in the region.