Investing.com - The pound remained lower against the U.S. dollar on Monday, as uncertainty over whether Spain is about to request a full-scale sovereign bailout continued to dominate market sentiment.
GBP/USD hit 1.6022 during U.S. morning trade, the daily low, the pair subsequently consolidated at 1.6053, edging down 0.14%.
Cable was likely to find support at 1.5983, Thursday’s low and resistance at 1.6141, the high of October 8.
Investors remained cautious after Spain did not request a bailout over the weekend, disappointing some market expectations and a request is now seen as increasingly unlikely ahead of regional elections on October 21.
Elsewhere in the euro zone, uncertainty over when Greece will receive its next tranche of financial aid remained a source of concern.
Sterling also remained vulnerable ahead of upcoming U.K. data on retail sales, employment and inflation later in the week, amid concerns that weak numbers could further undermine hopes for a sustained economic recovery and increase the likelihood for more easing by the Bank of England.
In the U.S., the Commerce Department said earlier that retail sales rose by a seasonally adjusted 1.1% in September, beating expectations for a 0.8% increase.
Retail sales in August were revised up to a 1.2% gain from a previously reported increase of 0.9%.
Core retail sales, which exclude automobile sales, rose by 1.1%, outstripping expectations for a 0.6% increase.
A separate report showed that the New York Federal Reserve’s index of manufacturing conditions improved to minus 6.2 in October from minus 10.4 the previous month, but remained in contraction territory for the third consecutive month.
Elsewhere, the pound was steady against the euro with EUR/GBP inching up 0.02%, to hit 0.8061.
Also Monday, official data showed that U.S. business inventories rose more-than-expected in August, climbing 0.6% compared to expectations for a 0.5% gain.
GBP/USD hit 1.6022 during U.S. morning trade, the daily low, the pair subsequently consolidated at 1.6053, edging down 0.14%.
Cable was likely to find support at 1.5983, Thursday’s low and resistance at 1.6141, the high of October 8.
Investors remained cautious after Spain did not request a bailout over the weekend, disappointing some market expectations and a request is now seen as increasingly unlikely ahead of regional elections on October 21.
Elsewhere in the euro zone, uncertainty over when Greece will receive its next tranche of financial aid remained a source of concern.
Sterling also remained vulnerable ahead of upcoming U.K. data on retail sales, employment and inflation later in the week, amid concerns that weak numbers could further undermine hopes for a sustained economic recovery and increase the likelihood for more easing by the Bank of England.
In the U.S., the Commerce Department said earlier that retail sales rose by a seasonally adjusted 1.1% in September, beating expectations for a 0.8% increase.
Retail sales in August were revised up to a 1.2% gain from a previously reported increase of 0.9%.
Core retail sales, which exclude automobile sales, rose by 1.1%, outstripping expectations for a 0.6% increase.
A separate report showed that the New York Federal Reserve’s index of manufacturing conditions improved to minus 6.2 in October from minus 10.4 the previous month, but remained in contraction territory for the third consecutive month.
Elsewhere, the pound was steady against the euro with EUR/GBP inching up 0.02%, to hit 0.8061.
Also Monday, official data showed that U.S. business inventories rose more-than-expected in August, climbing 0.6% compared to expectations for a 0.5% gain.