Investing.com - The pound remained lower against the U.S. dollar on Monday, as sustained concerns over the debt crisis in the euro zone dominated market sentiment, weighing on demand for riskier assets.
GBP/USD hit 1.6182 during U.S. morning trade, the pair's lowest since September 20; the pair subsequently consolidated at 1.6190, falling 0.22%.
Cable was likely to find support at 1.6151, the low of September 14 and resistance at 1.6251, the session high.
Risk sentiment weakened after a report earlier showed that Germany’s Ifo business confidence index deteriorated to the lowest level since March 2010 this month, amid ongoing concerns over euro zone’s debt crisis.
The German Ifo business climate index fell to 101.4 from 102.3 in August, the fifth monthly decline in a row, compared to expectations for a reading of 102.5.
Meanwhile, uncertainty over whether Spain will request a full scale sovereign bailout weighed.
On Thursday, Madrid is to present its draft budget for next year and announce structural reforms, while the results of bank stress tests are due on Friday. In addition, ratings agency Moody’s is expected to complete a ratings review on Spain later this week.
Over the weekend, Spain’s economy minister said the country would not rush to seek external financial aid, as pressure mounted on Spain to seek a bailout.
Elsewhere, the pound was higher against the euro with EUR/GBP shedding 0.33%, to hit 0.7971.
Meanwhile, concerns over Greece persisted as Athens prepared to present a package of spending cuts demand by international lenders to euro zone officials at the end of this week, amid fears that the country’s budget shortfall could be larger than expected.
GBP/USD hit 1.6182 during U.S. morning trade, the pair's lowest since September 20; the pair subsequently consolidated at 1.6190, falling 0.22%.
Cable was likely to find support at 1.6151, the low of September 14 and resistance at 1.6251, the session high.
Risk sentiment weakened after a report earlier showed that Germany’s Ifo business confidence index deteriorated to the lowest level since March 2010 this month, amid ongoing concerns over euro zone’s debt crisis.
The German Ifo business climate index fell to 101.4 from 102.3 in August, the fifth monthly decline in a row, compared to expectations for a reading of 102.5.
Meanwhile, uncertainty over whether Spain will request a full scale sovereign bailout weighed.
On Thursday, Madrid is to present its draft budget for next year and announce structural reforms, while the results of bank stress tests are due on Friday. In addition, ratings agency Moody’s is expected to complete a ratings review on Spain later this week.
Over the weekend, Spain’s economy minister said the country would not rush to seek external financial aid, as pressure mounted on Spain to seek a bailout.
Elsewhere, the pound was higher against the euro with EUR/GBP shedding 0.33%, to hit 0.7971.
Meanwhile, concerns over Greece persisted as Athens prepared to present a package of spending cuts demand by international lenders to euro zone officials at the end of this week, amid fears that the country’s budget shortfall could be larger than expected.