Investing.com - The pound held early gains against the U.S. dollar on Monday, as market sentiment remained upbeat but further gains were capped by lingering concerns over the outlook for the economic recovery in the U.K.
GBP/USD hit 1.5880 during European afternoon trade, the pair’s highest since February 9; the pair subsequently consolidated at 1.5870, gaining 0.27%.
Cable was likely to find support at 1.5826, the session low and resistance at 1.5904, the high of February 7.
Demand for higher yielding assets was boosted by expectations that European leaders would sign off on a second bailout deal for Greece at a meeting in Brussels later in the day and after China’s central bank announced further monetary easing measures to boost growth over the weekend.
Speaking ahead of the euro zone meeting, Greek Finance Minister Evangelos Venizelos said negotiations on the EUR130 billion bailout and a linked debt restructuring deal would continue until the last minute but added that Greece has met all the conditions demanded by its creditors.
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.
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.
The pound was lower against the euro, with EUR/GBP advancing 0.75% to hit 0.8363.
Also Monday, a report by U.K. property website Rightmove showed that average asking prices for houses jumped 4.1% in February, the highest monthly increase since April 2002, indicating increasing confidence in the housing market.
GBP/USD hit 1.5880 during European afternoon trade, the pair’s highest since February 9; the pair subsequently consolidated at 1.5870, gaining 0.27%.
Cable was likely to find support at 1.5826, the session low and resistance at 1.5904, the high of February 7.
Demand for higher yielding assets was boosted by expectations that European leaders would sign off on a second bailout deal for Greece at a meeting in Brussels later in the day and after China’s central bank announced further monetary easing measures to boost growth over the weekend.
Speaking ahead of the euro zone meeting, Greek Finance Minister Evangelos Venizelos said negotiations on the EUR130 billion bailout and a linked debt restructuring deal would continue until the last minute but added that Greece has met all the conditions demanded by its creditors.
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.
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.
The pound was lower against the euro, with EUR/GBP advancing 0.75% to hit 0.8363.
Also Monday, a report by U.K. property website Rightmove showed that average asking prices for houses jumped 4.1% in February, the highest monthly increase since April 2002, indicating increasing confidence in the housing market.