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Forex - GBP/USD pushes higher on renewed Greece hopes

Published 02/01/2012, 04:23 AM
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Investing.com - The pound erased early losses to push higher against the U.S. dollar on Wednesday, amid renewed hopes for an agreement between Greece and its creditors on a new bailout deal after comments from a senior International Monetary Fund official.

GBP/USD pulled away from 1.5707, the session low, to hit 1.5769 during European morning trade, easing up 0.07%.

Cable was likely to find support at 1.5698, Tuesday’s low and short-term resistance at 1.5796, Tuesday’s high and a two-and-a-half month high.

The pound’s gains came after Greek newspaper Kathimerini reported that the head of the IMF mission to Athens said talks on a new loan program for the country will conclude within a matter of days.

Earlier in the week Greek officials indicated that separate negotiations with the country’s private creditors were very close to being finalized, but concerns have persisted that the debt swap deal will not go far enough to reduce the country’s debt load.

An agreement is necessary for Greece to secure its next tranche of bailout funds in order to avoid a default when a EUR14.5 billion bond repayment comes due on March 20.

The pound was fractionally lower against the euro, with EUR/GBP inching up 0.06% to hit 0.8305.

Later in the day, the U.K. was to publish data on manufacturing activity, while the U.S. was to release a report on ADP non-farm payrolls, as well as a report by the Institute for Supply Management on manufacturing sector growth.


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