Investing.com - The pound was higher against the U.S. dollar on Monday, as relief which greeted news that Spain is to receive a bailout for its troubled banking sector was overshadowed by ongoing concerns over the outcome of Greek elections.
GBP/USD hit 1.5574 during European morning trade, the pair’s highest since Thursday; the pair subsequently consolidated at 1.5539, still up 0.43% on the day.
Cable was likely to find support at 1.5403, Friday’s low and resistance at 1.5599, Thursday’s high and a six-day high.
On Saturday, Spain’s Finance Minister Luis de Guindos said the European Union will grant Spain a loan of up to EUR100 billion that the government will use to recapitalize its banks.
Finance ministers from the euro zone welcomed the move, saying the sum "must cover estimated capital requirements with an additional safety margin."
But investors remained jittery amid uncertainty over the outcome of a Greek general election on June 17, which could determine the course of the country’s future in the euro zone.
The pound was lower against the euro, with EUR/GBP up 0.25% to hit 0.8111, but pushed higher against the traditional safe haven yen, with GBP/JPY UP 0.51% to hit 123.52.
Elsewhere Monday, markets shrugged off official data showing that Chinese inflation, industrial output and retail sales disappointed expectations in May, after unexpectedly strong import data eased concerns over a ‘hard landing’ in the world’s second largest economy.
GBP/USD hit 1.5574 during European morning trade, the pair’s highest since Thursday; the pair subsequently consolidated at 1.5539, still up 0.43% on the day.
Cable was likely to find support at 1.5403, Friday’s low and resistance at 1.5599, Thursday’s high and a six-day high.
On Saturday, Spain’s Finance Minister Luis de Guindos said the European Union will grant Spain a loan of up to EUR100 billion that the government will use to recapitalize its banks.
Finance ministers from the euro zone welcomed the move, saying the sum "must cover estimated capital requirements with an additional safety margin."
But investors remained jittery amid uncertainty over the outcome of a Greek general election on June 17, which could determine the course of the country’s future in the euro zone.
The pound was lower against the euro, with EUR/GBP up 0.25% to hit 0.8111, but pushed higher against the traditional safe haven yen, with GBP/JPY UP 0.51% to hit 123.52.
Elsewhere Monday, markets shrugged off official data showing that Chinese inflation, industrial output and retail sales disappointed expectations in May, after unexpectedly strong import data eased concerns over a ‘hard landing’ in the world’s second largest economy.