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Forex - GBP/USD hits daily low amid increased risk aversion

Published 11/15/2010, 03:20 AM
GBP/USD
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EUR/GBP
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Investing.com – The pound was down against the broadly stronger U.S. dollar on Monday, falling to hit a daily low as risk aversion remained high amid sovereign debt uncertainty in the euro zone and speculation over monetary tightening in China.

GBP/USD hit 1.6067 during late Asian trade, the daily low; the pair subsequently consolidated at 1.6073, shedding 0.26%.

Cable was likely to find support at 1.5960, the low of November 10 and resistance at 1.6212, the high of November 8.

Over the weekend European leaders urged Ireland to accept a bailout from the European Union's EUR500 billion emergency-loan facility to help restore confidence in the financial markets. 

However Ireland resisted the offer and Irish government officials have repeatedly insisted that the country can survive without assistance from the EU.

Elsewhere, speculation that China may increase its benchmark interest rate in an effort to curb inflation also dampened risk appetite.

Meanwhile, the pound was up against the euro, with EUR/GBP shedding 0.08% to hit 0.8489.

Earlier Monday, U.K. property website Rightmove said that asking prices for houses in the U.K. suffered their largest monthly drop since December 2007.

Rightmove's House Price Index found asking prices down 3.2% on the month and up 1.3% on the year in November, having risen 2.9% on the year in October.

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