Forex - GBP/USD slips on Greece uncertainty

Published 02/07/2012, 04:12 AM
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Investing.com - The pound slid lower against the U.S. dollar on Tuesday, as prolonged uncertainty over whether Greece can reach a consensus on bailout terms continued to weigh on market sentiment.

GBP/USD hit 1.5793 during European morning trade, the session low; the pair subsequently consolidated at 1.5805, slipping 0.09%.

Cable was likely to find support at 1.5749, last Friday’s low and resistance at 1.5840, Monday’s high.

Greek Prime Minister Lucas Papademos was due to hold talks with coalition leaders later in the day, to discuss what conditions they are prepared to accept in exchange for a second bailout, after postponing talks on Monday and failing to finalize an agreement over the weekend.

European Union officials have said a final agreement on Greece’s EUR130 billion bailout must be approved by February 15, in order to avert a default when a EUR14.5 billion bond repayment comes due on March 20.

In the U.K., a report by the British Retail Consortium showed that retail sales fell 0.3% on the year in January, after a 2.2% jump the previous month, as shoppers cut back on spending after heavy discounts boosted sales in the run up to Christmas.

The pound was also lower against the euro, with EUR/GBP easing up 0.11% to hit 0.8306.

Later Tuesday, Federal Reserve Chairman Ben Bernanke was due to testify on the economic outlook and federal budget situation before the Senate Budget Committee in Washington.


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