Investing.com – The pound was down against the U.S. dollar on Monday, slipping to a daily low after U.S. Federal Reserve Chairman Ben Bernanke said a double-dip recession “doesn’t seem likely.”
GBP/USD hit 1.5716 during late Asian trade, the daily low; the pair subsequently consolidated at 1.5718, shedding 0.33%.
The pair was likely to find support at 1.5580, last Friday’s low and resistance at 1.5836, the high of November 24.
On Sunday’s “60 Minutes” Bernanke said a return to a recession was not likely because sectors of the economy such as housing could not become much more depressed. He also said it could take four to five years for the unemployment rate to fall to a normal level.
On Friday, the U.S. Department of Labor reported that the nation’s unemployment rate rose to 9.8% in November from 9.6% in October, defying expectations for an unchanged reading.
Bernanke also said Fed purchases of Treasury securities beyond the USD 600 billion in asset purchases announced last month were possible.
Meanwhile, the pound was up against the euro, with EUR/GBP shedding 0.28% to hit 0.8481.
Later Monday, euro zone finance ministers were due to meet. The ministers faced pressure to increase the size of a EUR 750 billion safety net for indebted euro members, in order to arrest sovereign debt contagion in the single currency bloc.
GBP/USD hit 1.5716 during late Asian trade, the daily low; the pair subsequently consolidated at 1.5718, shedding 0.33%.
The pair was likely to find support at 1.5580, last Friday’s low and resistance at 1.5836, the high of November 24.
On Sunday’s “60 Minutes” Bernanke said a return to a recession was not likely because sectors of the economy such as housing could not become much more depressed. He also said it could take four to five years for the unemployment rate to fall to a normal level.
On Friday, the U.S. Department of Labor reported that the nation’s unemployment rate rose to 9.8% in November from 9.6% in October, defying expectations for an unchanged reading.
Bernanke also said Fed purchases of Treasury securities beyond the USD 600 billion in asset purchases announced last month were possible.
Meanwhile, the pound was up against the euro, with EUR/GBP shedding 0.28% to hit 0.8481.
Later Monday, euro zone finance ministers were due to meet. The ministers faced pressure to increase the size of a EUR 750 billion safety net for indebted euro members, in order to arrest sovereign debt contagion in the single currency bloc.