Forex - GBP/USD hits 3-day high after Basel agreement

Published 09/13/2010, 04:08 AM
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Investing.com – The pound was up against the U.S. dollar on Monday, advancing to a 3-day high, as concerns over the global banking sector were eased following new regulations imposed by the Basel Committee on Banking Supervision.  

GBP/USD hit 1.5486 during European morning trade, the pair’s highest since September 8; the pair subsequently consolidated at 1.5462, gaining 0.68%.

Cable was likely to find support at 1.5344, Friday’s low, and resistance at 1.5532, the high of September 8.

On Sunday, the Basel Committee on Banking Supervision agreed unanimously on new banking regulations intended to prevent a repeat of the recent international credit crisis. 
 
The new banking regulations put in place would require lenders to more than double capital requirements, but gave them up to eight years to comply.

Commenting on the agreement, Director of the British Bankers Association Simon Hills said "I think the banking sector can live with this deal. The capital conservation buffer is a bit lower than we had feared.”

Meanwhile, the pound was down against the euro, with EUR/GBP gaining 0.37% to hit 0.8284.

Later in the day, Britain is to release industry data on consumer confidence and house prices.

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