Investing.com – The pound edged lower against the U.S. dollar on Monday, amid an absence of economic data ahead of the release of January inflation figures for the U.K. on Tuesday and as broad euro weakness hit sentiment.
GBP/USD hit 1.5981 during European late afternoon trade, the daily low; the pair subsequently consolidated at 1.5993, dipping 0.07%.
Cable was likely to find support at 1.5962, Friday’s low and a two-week low and resistance at 1.6112, Friday’s high.
Earlier in the day, the pound dipped, tracking the euro lower, following reports that ailing German lender WestLB could be preparing to outline a government-supported restructuring plan before the European Commission's deadline on Tuesday, setting the groundwork for breaking up the bank.
The pound has rallied since the beginning of the year amid increasing expectations that the Bank of England will raise interest rates, as data continues to show that inflation has consistently over-shot the central banks 2% target rate.
Meanwhile, the pound was higher against the euro, with EUR/GBP shedding 0.48% to hit 0.8422.
Earlier in the day, U.K. Business Secretary Vince Cable said he shared the analysis of the doves on the Bank of England’s Monetary Policy Committee, saying an interest-rate increase was “potentially very difficult.”
GBP/USD hit 1.5981 during European late afternoon trade, the daily low; the pair subsequently consolidated at 1.5993, dipping 0.07%.
Cable was likely to find support at 1.5962, Friday’s low and a two-week low and resistance at 1.6112, Friday’s high.
Earlier in the day, the pound dipped, tracking the euro lower, following reports that ailing German lender WestLB could be preparing to outline a government-supported restructuring plan before the European Commission's deadline on Tuesday, setting the groundwork for breaking up the bank.
The pound has rallied since the beginning of the year amid increasing expectations that the Bank of England will raise interest rates, as data continues to show that inflation has consistently over-shot the central banks 2% target rate.
Meanwhile, the pound was higher against the euro, with EUR/GBP shedding 0.48% to hit 0.8422.
Earlier in the day, U.K. Business Secretary Vince Cable said he shared the analysis of the doves on the Bank of England’s Monetary Policy Committee, saying an interest-rate increase was “potentially very difficult.”