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Forex - GBP/USD slips as Clegg revises stance on coalition talks

Published 04/27/2010, 03:27 AM
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Investing.com – The pound slipped against the U.S. dollar on Tuesday, erasing much of Monday's gains after Britain's Liberal Democrat leader, Nick Clegg, revised his post-election negotiating position.

GBP/USD hit 1.5396 during early European trade, dropping 0.4%. Cable was likely to find resistance at 1.5523, the high of April 15, and support at 1.5191, last Monday's low.

Earlier in the day, Clegg was quoted as insisting he had not ruled out a possible deal with the Labour party, should the May 6 general election result in a hung parliament.

"I will work with a man from the moon, I don't care, with anyone who can deliver the greater fairness that I think people want," said the Lib Dem leader, according to the British daily The Guardian.

The pound has been hurt in recent weeks by fears that the election will be inconclusive, and that any government formed after which will lack the political will to tackle Britain's gaping budget deficit.

Sterling also fell versus the euro and yen on Tuesday: EUR/GBP rose 0.28% to hit 0.8681 and GBP/JPY shed 0.61% to reach 144.36.

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