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Forex - GBP/USD slips, close to two-month low

Published 11/12/2012, 03:59 AM
Updated 11/12/2012, 04:00 AM
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Investing.com - The pound slipped against the U.S. dollar on Monday, trading close to a two-month low as risk sentiment weakened ahead of a highly anticipated meeting of euro zone finance ministers in Brussels.

GBP/USD hit 1.5881 during European morning trade, the pair's lowest since September 5; the pair subsequently consolidated at 1.5882, easing 0.09%.

Cable was likely to find support at 1.5826, the low of September 5 and resistance at 1.5943, the high of September 6.

Sentiment found some support after Greece’s government approved a budget of spending cuts and tax increases for next year, just days after the parliament narrowly approved a EUR13.5 billion austerity package required to secure the country’s next installment of financial aid.

But investors remained cautious as euro zone finance ministers were to meet in Brussels later in the day to discuss whether to release a new tranche of funding to Greece.

Without the next aid installment, Greece risks default on November 16, when Athens must repay EUR5 billion of debts.

German Finance Minister Wolfgang Schaeuble told a German newspaper on Sunday that the troika of international lenders to Athens was unlikely to deliver its full report in time for Monday's meeting.

Sterling was steady against the euro with EUR/GBP inching up 0.05%, to hit 0.7999.

Later Monday, German Chancellor Angela Merkel was to travel to Lisbon to hold talks with Portuguese political leaders, amid public opposition to the country’s austerity cuts.


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