Investing.com - The pound remained higher against the U.S. dollar on Monday, as growing concerns over a potential U.S. sovereign default continued to weigh on demand for the greenback.
GBP/USD hit 1.5989 during U.S. morning trade, the pair's highest since October 9; the pair subsequently consolidated at 1.5968, adding 0.14%.
Cable was likely to find support at 1.5922, Friday’s low and resistance at 1.6070, the high of September 23.
Negotiations between the White House and House Republicans broke down over the weekend, after President Barack Obama rejected Republican proposals for a short-term debt ceiling increase.
If a deal to raise the government borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
World finance ministers and central bank heads in Washington for the annual meeting of the International Monetary Fund and World Bank over the weekend called for “urgent action” to break the deadlock, warning of the negative impact on the global economic recovery.
Sterling was fractionally higher against the euro with EUR/GBP edging down 0.07%, to hit 0.8484.
In the euro zone, data on Monday showed that industrial production rose 1% in August, coming in above expectations for a 0.8% increase.
GBP/USD hit 1.5989 during U.S. morning trade, the pair's highest since October 9; the pair subsequently consolidated at 1.5968, adding 0.14%.
Cable was likely to find support at 1.5922, Friday’s low and resistance at 1.6070, the high of September 23.
Negotiations between the White House and House Republicans broke down over the weekend, after President Barack Obama rejected Republican proposals for a short-term debt ceiling increase.
If a deal to raise the government borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
World finance ministers and central bank heads in Washington for the annual meeting of the International Monetary Fund and World Bank over the weekend called for “urgent action” to break the deadlock, warning of the negative impact on the global economic recovery.
Sterling was fractionally higher against the euro with EUR/GBP edging down 0.07%, to hit 0.8484.
In the euro zone, data on Monday showed that industrial production rose 1% in August, coming in above expectations for a 0.8% increase.