Investing.com – The pound extended losses against the U.S. dollar on Monday, falling to a daily low, as concerns over the sovereign debt crisis in the euro zone mounted ahead of a meeting of Eurogroup finance ministers.
GBP/USD hit 1.5656 during European afternoon trade, the daily low; the pair subsequently consolidated at 1.5678, shedding 0.56%.
The pair was likely to find support at 1.5580, last Friday’s low and resistance at 1.5836, the high of November 24.
Later in the day, euro zone finance ministers were due to meet in Brussels to discuss the outlook for Portugal, which was struggling to quell speculation it will need a bailout.
Ahead of the meeting, Belgian Finance Minister Didier Reynders said the EUR 750 billion bailout fund for euro zone countries should be expanded, breaking ranks with German Chancellor Angela Merkel and French President Nicolas Sarkozy, who last month rejected expanding the fund.
Meanwhile, Reuters reported that an International Monetary Fund report, to be delivered to the meeting in Brussels, said the euro zone should increase the size of the rescue fund and the European Central Bank should significantly boost its bond purchasing program.
Meanwhile, the pound was up against the euro, with EUR/GBP shedding 0.34% to hit 0.8477.
On Sunday, Federal Reserve Chairman Ben Bernanke said purchases of Treasuries beyond the USD600 billion announced last month were “certainly possible.”
The Fed chair also said it could be four to five years before the U.S. returned to a more normal jobless rate but that the U.S. economy was not likely to fall back into a recession.
GBP/USD hit 1.5656 during European afternoon trade, the daily low; the pair subsequently consolidated at 1.5678, shedding 0.56%.
The pair was likely to find support at 1.5580, last Friday’s low and resistance at 1.5836, the high of November 24.
Later in the day, euro zone finance ministers were due to meet in Brussels to discuss the outlook for Portugal, which was struggling to quell speculation it will need a bailout.
Ahead of the meeting, Belgian Finance Minister Didier Reynders said the EUR 750 billion bailout fund for euro zone countries should be expanded, breaking ranks with German Chancellor Angela Merkel and French President Nicolas Sarkozy, who last month rejected expanding the fund.
Meanwhile, Reuters reported that an International Monetary Fund report, to be delivered to the meeting in Brussels, said the euro zone should increase the size of the rescue fund and the European Central Bank should significantly boost its bond purchasing program.
Meanwhile, the pound was up against the euro, with EUR/GBP shedding 0.34% to hit 0.8477.
On Sunday, Federal Reserve Chairman Ben Bernanke said purchases of Treasuries beyond the USD600 billion announced last month were “certainly possible.”
The Fed chair also said it could be four to five years before the U.S. returned to a more normal jobless rate but that the U.S. economy was not likely to fall back into a recession.