Investing.com – The pound rose against the U.S. dollar on Monday, erasing some of its recent losses after Britain's Conservative and Liberal Democrat parties said they were close to agreeing on a deal that would allow David Cameron to take power.
GBP/USD hit 1.4862 during early European trade, gaining 0.39%. Cable was likely to find support at 1.4475, Friday's low, and resistance at 1.5173, Wednesday's high.
Late Sunday, Conservative and Lib Dem negotiators emerged from six hours of discussions in Whitehall to announce that further talks would be held on Monday. Although they did not say a formal deal had been struck, they voiced the hope that they would reach an agreement on a plan to cut Britain's huge budget deficit.
Sterling tumbled to a 1-year low versus the greenback on Friday on mounting political uncertainty in the wake of Britain's tightly fought general election, which left no party with an outright parliamentary majority.
Meanwhile, the pound jumped against the yen on Monday, with GBP/JPY advancing 1.96% to reach 138.36.
Later in the day, the Bank of England was set to announce a decision regarding its benchmark interest rate, which it has recently kept at a historic low to foster the country's fragile recession. The BoE was also due to announce a decision on its quantitative easing program, whereby the central bank creates money by purchasing bonds from commercial institutions.
GBP/USD hit 1.4862 during early European trade, gaining 0.39%. Cable was likely to find support at 1.4475, Friday's low, and resistance at 1.5173, Wednesday's high.
Late Sunday, Conservative and Lib Dem negotiators emerged from six hours of discussions in Whitehall to announce that further talks would be held on Monday. Although they did not say a formal deal had been struck, they voiced the hope that they would reach an agreement on a plan to cut Britain's huge budget deficit.
Sterling tumbled to a 1-year low versus the greenback on Friday on mounting political uncertainty in the wake of Britain's tightly fought general election, which left no party with an outright parliamentary majority.
Meanwhile, the pound jumped against the yen on Monday, with GBP/JPY advancing 1.96% to reach 138.36.
Later in the day, the Bank of England was set to announce a decision regarding its benchmark interest rate, which it has recently kept at a historic low to foster the country's fragile recession. The BoE was also due to announce a decision on its quantitative easing program, whereby the central bank creates money by purchasing bonds from commercial institutions.