Forex - GBP/USD inches higher upside limited

Published 03/12/2012, 05:15 AM
GBP/USD
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EUR/GBP
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Investing.com - The pound inched higher against the U.S. dollar on Monday, but gains looked likely to remain limited as ongoing concerns over Greece’s credit event ruling supported safe haven demand.

GBP/USD hit 1.5691 during European morning trade, the session high; the pair subsequently consolidated at 1.5683, easing up 0.06%.

Cable was likely to find support at 1.5644, the low of February 14 and resistance at 1.5746, the high of February 23.

On Friday, the International Swaps and Derivatives Association ruled that Greece’s debt swap with private creditors constituted a “credit event”, which would activate credit-default swaps, designed to protect investors against losses on Greek sovereign debt.

The dollar also remained supported after Friday’s upbeat U.S. employment data dampened expectations for a fresh round of asset purchases by the Federal Reserve to help stimulate growth.

The Department of Labor said the U.S. economy added 227,000 jobs in February, beating expectations for a 210,000 gain. The unemployment rate held steady at a three year low of 8.3%.

The pound was slightly higher against the euro, with EUR/GBP slipping 0.10% to hit 0.8363.

Later in the day, euro zone finance ministers were to hold talks in Brussels, to give their final approval to a EUR130 billion bailout for Greece.

Ministers were also likely to discuss Spain, after Prime Minister Mariano Rajoy announced earlier this month that the country would cut its public deficit to 5.8% of annual output, instead of the planned 4.4% in 2012.


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