Forex - GBP/USD remains lower after Japan intervention

Published 10/31/2011, 08:40 AM
GBP/USD
-
EUR/GBP
-
Investing.com – The pound trimmed losses against the U.S. dollar on Monday, but remained under pressure after Japan intervened in the foreign exchange market to curb the appreciation of the yen, boosting demand for the greenback.

GBP/USD pulled away from 1.5965, the pair’s lowest since Thursday, to hit 1.6027 during European early afternoon trade, still down 0.61%.

Cable was likely to find support at 1.5890, the low of October 26 and resistance at 1.6136, the days high and an almost two-month high.

Japanese officials launched an intervention to curb the appreciation of the yen after the dollar fell to a record low of JPY75.56 in early Asian trade.

Japan’s Vice Finance Minister Fumihiko Igarashi said that the intervention was not targeting specific currency levels and added that it was too early to assess the impact of the action, which may not yet have ended.

Meanwhile, market sentiment was dented by concerns that last week's meeting of euro zone leaders offered few details on how a planned package of measures to contain the debt crisis in the region would be achieved.

Elsewhere, the pound was up against the euro, with EUR/GBP shedding 0.54% to hit 0.8726.

Also Monday, official data showed that net lending to individuals in the U.K. rose slightly more-than-expected in September, while mortgage approvals declined in line with expectations.

Later in the day, the U.S. was to release data on manufacturing activity in the Chicago area.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.