Forex - GBP/USD lower, focus on Greek deadline

Published 02/06/2012, 04:09 AM
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Investing.com - The pound was lower against the U.S. dollar on Monday, as concerns ahead of Greece’s deadline to accept the conditions required for a second bailout deal weighed on demand for riskier assets.

GBP/USD hit 1.5760 during European morning trade, the daily low; the pair subsequently consolidated at 1.5751, retreating 0.40%.

Cable was likely to find support at 1.5694, the low of October 19 and resistance at 1.5826, the high of November 16.

Markets were jittery as Greek political leaders had to decide whether they accept the conditions laid out by the country’s international creditors by 11a.m. local time on Monday, in order to secure a EUR130 billion aid package.

Over the weekend Greek Prime Minister Lucas Papademos said coalition members had agreed on some conditions, but others still needed to be addressed.

In the U.K., industry data showed earlier that house price inflation rose more-than-expected in January, ticking up 0.6% after a 1% decline the previous month. 

Analysts had expected house price inflation to rise 0.1% in January.

Meanwhile, investors were also eyeing Thursday’s reports on the Bank of England’s asset purchase facility and interest rate statement, amid speculation the central bank will take further monetary easing steps to shore up the country’s economy.

Sterling was higher against the euro with EUR/GBP shedding 0.50%, to hit 0.8280.

Later in the day, the euro zone was to publish a report on investor confidence, while Germany was to publish official data on factory orders.


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