Investing.com - The pound remained steady against the U.S. dollar on Monday, trading close to a three-week low as concerns over the possible ramifications of a Greek exit from the euro zone supported safe haven demand.
GBP/USD hit 1.6052 during European afternoon trade, the pair’s lowest since April 20; the pair subsequently consolidated at 1.6082, inching up 0.08%.
Cable was likely to find support at 1.6008, the low of April 19 and resistance at 1.6152, Friday’s high.
Speculation over the possibility of a Greek exit from the euro zone intensified, as talks aimed at forming a coalition government remained at an impasse, fuelling fears that a fresh round of elections is becoming inevitable and casting the country’s ability to uphold its fiscal commitments into doubt.
Meanwhile, concerns over the health of Spain’s banking system persisted, pushing the yield on Spanish 10-year bonds to 6.27%, the highest level since December after the country sold EUR2.90 billion of 12-month and 18-month bonds, in an auction which saw short-term borrowing costs rise.
Adding to the bearish sentiment, official data showed that industrial production in the euro zone fell unexpectedly in March, adding to fears over the health of the region’s economy.
Eurostat, the European statistics agency said industrial production dipped by a seasonally adjusted 0.3% in March, defying expectations for a 0.4% increase.
The pound remained supported as investors viewed sterling as a safe alternative to the euro.
The pound was trading at a three-and-a-half year low against the euro, with EUR/GBP shedding 0.47% to hit 0.8000.
Later in the day, European Union finance ministers were to hold talks in Brussels. In addition Greece’s president was due to hold last-ditch cross party talks in an attempt to avert fresh elections.
GBP/USD hit 1.6052 during European afternoon trade, the pair’s lowest since April 20; the pair subsequently consolidated at 1.6082, inching up 0.08%.
Cable was likely to find support at 1.6008, the low of April 19 and resistance at 1.6152, Friday’s high.
Speculation over the possibility of a Greek exit from the euro zone intensified, as talks aimed at forming a coalition government remained at an impasse, fuelling fears that a fresh round of elections is becoming inevitable and casting the country’s ability to uphold its fiscal commitments into doubt.
Meanwhile, concerns over the health of Spain’s banking system persisted, pushing the yield on Spanish 10-year bonds to 6.27%, the highest level since December after the country sold EUR2.90 billion of 12-month and 18-month bonds, in an auction which saw short-term borrowing costs rise.
Adding to the bearish sentiment, official data showed that industrial production in the euro zone fell unexpectedly in March, adding to fears over the health of the region’s economy.
Eurostat, the European statistics agency said industrial production dipped by a seasonally adjusted 0.3% in March, defying expectations for a 0.4% increase.
The pound remained supported as investors viewed sterling as a safe alternative to the euro.
The pound was trading at a three-and-a-half year low against the euro, with EUR/GBP shedding 0.47% to hit 0.8000.
Later in the day, European Union finance ministers were to hold talks in Brussels. In addition Greece’s president was due to hold last-ditch cross party talks in an attempt to avert fresh elections.