Forex - GBP/USD steady after Greece bailout agreed

Published 02/21/2012, 04:25 AM
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Investing.com - The pound was steady against the U.S. dollar on Tuesday, trading close to a three-month high as markets digested the news that an agreement on a second bailout for Greece had been finalized.

GBP/USD hit 1.5865 during European morning trade, the session high; the pair subsequently consolidated at 1.5841, dipping 0.05%.

Cable was likely to find support at 1.5808, the session low and resistance at 1.5904, the high of February 7 and an almost three-month high.

Euro zone finance ministers agreed the details of a EUR130bn financial package for Greece, which will cut Greece's debt-to-gross domestic product ratio to 120.5% of GDP in eight years and the rate of the original bailout loan is to be reduced.

The country’s private creditors accepted a more than 53% voluntary write down on the value on the bonds they hold.

But investors remained wary as concerns over the implementation of the package lingered.

Meanwhile, the Troika, which is composed of the European Union, European Central Bank and the International Monetary Fund, said in its latest report on Greece's debt sustainability that "additional debt relief" will be required in the future.

The pound was also lower against the euro, with EUR/GBP rising 0.25% to hit 0.8374.

Later in the day, the U.K. was to publish official data on public sector borrowing.


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