Investing.com - The pound remained near eight-month highs against the U.S. dollar on Monday, as the possibility of a government shutdown in the U.S. continued to weigh on demand for the greenback.
GBP/USD hit 1.6182 during U.S. morning trade, the pair's highest since early January; the pair subsequently consolidated at 1.6152, easing up 0.08%.
Cable was likely to find support at 1.6100 and resistance at 1.6030, the low of September 27.
Political wrangling in Washington over funding for President Barack Obama’s healthcare law continued over the weekend, fuelling fears over a possible government shutdown.
Congress must pass a short-term budget by midnight on Monday in order to keep the government open.
Republican opposition to the funding of the Affordable Care Act has created a standoff with the White House and the Democratic-controlled Senate, which have both said they will not support any budget bill that defunds or amends Obamacare.
Markets were also jittery after data earlier showed that China’s HSBC manufacturing index was revised down to 50.2 from an initial reading of 51.2 this month, indicating that the recovery in the world’s second largest economy remains fragile.
Economists had expected an unchanged reading.
Meanwhile, the pound remained supported after Bank of England Governor Mark Carney said last week that he did not see a case for further quantitative easing.
The pound showed little reaction after data released on Monday showed that U.K. net lending rose in line with expectations in August, while mortgage approvals rose more than expected.
Sterling fractionally higher against the euro with EUR/GBP inching down 0.09%, to hit 0.8370.
In the euro zone, Silvio Berlusconi announced Saturday that he was pulling his ministers out of Prime Minister Enrico Letta’s coalition government and called for fresh elections to be held.
GBP/USD hit 1.6182 during U.S. morning trade, the pair's highest since early January; the pair subsequently consolidated at 1.6152, easing up 0.08%.
Cable was likely to find support at 1.6100 and resistance at 1.6030, the low of September 27.
Political wrangling in Washington over funding for President Barack Obama’s healthcare law continued over the weekend, fuelling fears over a possible government shutdown.
Congress must pass a short-term budget by midnight on Monday in order to keep the government open.
Republican opposition to the funding of the Affordable Care Act has created a standoff with the White House and the Democratic-controlled Senate, which have both said they will not support any budget bill that defunds or amends Obamacare.
Markets were also jittery after data earlier showed that China’s HSBC manufacturing index was revised down to 50.2 from an initial reading of 51.2 this month, indicating that the recovery in the world’s second largest economy remains fragile.
Economists had expected an unchanged reading.
Meanwhile, the pound remained supported after Bank of England Governor Mark Carney said last week that he did not see a case for further quantitative easing.
The pound showed little reaction after data released on Monday showed that U.K. net lending rose in line with expectations in August, while mortgage approvals rose more than expected.
Sterling fractionally higher against the euro with EUR/GBP inching down 0.09%, to hit 0.8370.
In the euro zone, Silvio Berlusconi announced Saturday that he was pulling his ministers out of Prime Minister Enrico Letta’s coalition government and called for fresh elections to be held.