Forex - GBP/USD remains higher, E.Z. talks in focus

Published 01/09/2012, 07:19 AM
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Investing.com - The pound remained higher against the U.S. dollar on Monday, as markets turned to a meeting of French and German leaders later in the day but gains were capped by ongoing concerns over the debt crisis in the euro zone.

GBP/USD hit 1.5458 during European early afternoon trade, the daily high; the pair subsequently consolidated at 1.5440, adding 0.09%.

Cable was likely to find support at 1.5361, the low of December 29 and resistance at 1.5525, the high of January 6.

Later Monday, German Chancellor Angela Merkel and French President Nicolas Sarkozy were to meet to discuss proposals to tighten coordination of fiscal policy in the single currency bloc.

Sentiment found mild support earlier after official data showed that German exports jumped 2.5% in November; unexpectedly increasing the trade surplus and easing concerns over a slowdown in Europe’s largest economy.

But gains were limited after a separate report showed that German industrial production fell more-than-expected in November, dropping for the third time in the last four months.

Meanwhile, concerns over the ability of troubled euro zone nations to fulfill their sovereign funding needs continued to weigh, ahead of government debt auctions by Spain and Italy later in the week.

Elsewhere, the pound was lower against the euro with EUR/GBP rising 0.21%, to hit 0.8264.

Also Monday, a report showed that investor confidence in the euro zone improved more-than-expected this month, but remained in negative territory for the sixth consecutive month.


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