Investing.com - The pound slumped to a two-day low against the U.S. dollar on Monday, as market sentiment was hit by concerns that the debt crisis in the euro zone could flare up again if Spain does not push ahead with imposing harsh austerity measures.
GBP/USD hit 1.5801 during European morning trade, the pair’s lowest since March 22; the pair subsequently consolidated at 1.5808, shedding 0.38%.
Cable was likely to find support at 1.5769, the low of March 22 and resistance at 1.5882, the session high.
Over the weekend, Italian Prime Minister Mario Monti warned that the threat of contagion from Spain could cause the debt crisis in the euro zone to flare up again.
On Friday, Spain’s Prime Minister Mariano Rajoy is due to announce EUR40 billion in budget cuts, as he attempts to slash the country’s deficit in the face of a looming recession.
Concerns over Spain overshadowed a report showing that German business confidence improved in March.
The Ifo Institute said earlier that its index of German business confidence inched up to 109.8, from a reading of 109.6 in February. Analysts had expected the index to ease up to 109.7 this month.
Elsewhere, the pound was higher against the euro, with EUR/GBP slipping 0.16% to hit 0.8348.
Later Monday, the U.S. was to publish industry data on pending home sales.
GBP/USD hit 1.5801 during European morning trade, the pair’s lowest since March 22; the pair subsequently consolidated at 1.5808, shedding 0.38%.
Cable was likely to find support at 1.5769, the low of March 22 and resistance at 1.5882, the session high.
Over the weekend, Italian Prime Minister Mario Monti warned that the threat of contagion from Spain could cause the debt crisis in the euro zone to flare up again.
On Friday, Spain’s Prime Minister Mariano Rajoy is due to announce EUR40 billion in budget cuts, as he attempts to slash the country’s deficit in the face of a looming recession.
Concerns over Spain overshadowed a report showing that German business confidence improved in March.
The Ifo Institute said earlier that its index of German business confidence inched up to 109.8, from a reading of 109.6 in February. Analysts had expected the index to ease up to 109.7 this month.
Elsewhere, the pound was higher against the euro, with EUR/GBP slipping 0.16% to hit 0.8348.
Later Monday, the U.S. was to publish industry data on pending home sales.