Investing.com - The pound held gains against the U.S. dollar on Monday as hopes that Greece is close to securing a second bailout buoyed demand for riskier assets but the uncertain outlook for the U.K. economy continued to weigh on sterling.
GBP/USD hit 1.5880 during European afternoon trade, the pair’s highest since February 9; the pair subsequently consolidated at 1.5857, gaining 0.19%.
Cable was likely to find support at 1.5826, the session low and resistance at 1.5904, the high of February 7.
Market sentiment was bolstered as euro zone finance ministers gathered in Brussels amid expectations that they would rubber stamp a second bailout worth EUR130 billion and a linked debt restructuring deal for Greece.
Speaking ahead of the meeting, Greek Finance Minister Evangelos Venizelos said “We expect the long period of uncertainty, that benefitted neither the Greek economy nor the euro zone overall, to end today”.
Risk appetite also found support after the People’s Bank of China announced over the weekend that it is to cut the reserve requirement ratios of major commercial lenders in an attempt to boost liquidity and spur growth in the world’s second largest economy.
But investors remained wary of pushing sterling too high amid concerns that the faltering recovery in the U.K. could prompt the Bank of England to implement fresh stimulus measures to spur growth.
The pound was lower against the euro, with EUR/GBP advancing 0.75% to hit 0.8363.
Trade volumes were expected to remain light throughout the day, as markets in the U.S. were to remain closed for the Presidents Day holiday.
GBP/USD hit 1.5880 during European afternoon trade, the pair’s highest since February 9; the pair subsequently consolidated at 1.5857, gaining 0.19%.
Cable was likely to find support at 1.5826, the session low and resistance at 1.5904, the high of February 7.
Market sentiment was bolstered as euro zone finance ministers gathered in Brussels amid expectations that they would rubber stamp a second bailout worth EUR130 billion and a linked debt restructuring deal for Greece.
Speaking ahead of the meeting, Greek Finance Minister Evangelos Venizelos said “We expect the long period of uncertainty, that benefitted neither the Greek economy nor the euro zone overall, to end today”.
Risk appetite also found support after the People’s Bank of China announced over the weekend that it is to cut the reserve requirement ratios of major commercial lenders in an attempt to boost liquidity and spur growth in the world’s second largest economy.
But investors remained wary of pushing sterling too high amid concerns that the faltering recovery in the U.K. could prompt the Bank of England to implement fresh stimulus measures to spur growth.
The pound was lower against the euro, with EUR/GBP advancing 0.75% to hit 0.8363.
Trade volumes were expected to remain light throughout the day, as markets in the U.S. were to remain closed for the Presidents Day holiday.