Investing.com – The pound edged lower against the U.S. dollar on Monday, falling to a fresh daily low, as expectations of renewed monetary easing by the Federal Reserve rose after world leaders failed to come to a new currency coordination agreement.
GBP/USD hit 1.5896 during European afternoon trade, a daily low; the pair subsequently consolidated at 1.5911, shedding 0.32%.
Cable was likely to find short-term support at 1.5822, last Friday’s low and resistance at 1.6017, last Thursday’s high.
Over the weekend, meetings of International Monetary Fund members and the World Bank focused on the need for a cooperative approach to address uneven global economic growth and simmering tensions among countries vying to keep their currencies weak in order to boost export growth.
At the conclusion of the meetings, the IMF’s governing body pledged to "work towards a more balanced pattern of global growth, recognising the responsibilities of deficit and surplus countries,” although it stopped short of any move to limit currency movements.
Meanwhile, data released on Friday showed that U.S. non-farm payrolls fell unexpectedly in September, down for the fourth consecutive month. The weak data reinforced expectations that the Federal Reserve will announce new asset buying in order to boost the flagging U.S. economy, effectively devaluing the U.S. dollar.
Meanwhile, the pound was up against the euro, with EUR/GBP shedding 0.21% to hit 0.8733.
Also Friday, U.K. Chancellor of the Exchequer, George Osborne reiterated his tightening plans have the backing of the IMF, the Bank of England and credit rating agencies.
He said that with bond markets still concerned about the solvency of some European economies, "the big risk for the U.K. is not having a credible plan to deal with the deficit."
GBP/USD hit 1.5896 during European afternoon trade, a daily low; the pair subsequently consolidated at 1.5911, shedding 0.32%.
Cable was likely to find short-term support at 1.5822, last Friday’s low and resistance at 1.6017, last Thursday’s high.
Over the weekend, meetings of International Monetary Fund members and the World Bank focused on the need for a cooperative approach to address uneven global economic growth and simmering tensions among countries vying to keep their currencies weak in order to boost export growth.
At the conclusion of the meetings, the IMF’s governing body pledged to "work towards a more balanced pattern of global growth, recognising the responsibilities of deficit and surplus countries,” although it stopped short of any move to limit currency movements.
Meanwhile, data released on Friday showed that U.S. non-farm payrolls fell unexpectedly in September, down for the fourth consecutive month. The weak data reinforced expectations that the Federal Reserve will announce new asset buying in order to boost the flagging U.S. economy, effectively devaluing the U.S. dollar.
Meanwhile, the pound was up against the euro, with EUR/GBP shedding 0.21% to hit 0.8733.
Also Friday, U.K. Chancellor of the Exchequer, George Osborne reiterated his tightening plans have the backing of the IMF, the Bank of England and credit rating agencies.
He said that with bond markets still concerned about the solvency of some European economies, "the big risk for the U.K. is not having a credible plan to deal with the deficit."