Investing.com - The pound trimmed gains against the U.S. dollar on Monday, but remained supported as fears of a possible U.S. default continued to weigh broadly on demand for the greenback.
GBP/USD pulled away from 1.6100, the session high, to hit 1.6067 during U.S. morning trade, still up 0.37%.
Cable was likely to find support at 1.6004, Friday’s low and resistance at 1.6176, Friday’s high.
Republican House Speaker John Boehner said Sunday the House will not support bills to fully reopen the government or increase the U.S. debt ceiling unless the Obama administration agrees to talks aimed at reducing the deficit.
The comments fuelled fears that the political deadlock in Washington will not be resolved by October 17, the date which the Treasury Department has estimated the U.S. could risk an unprecedented default.
China’s vice finance minister warned Monday that a U.S. default could seriously harm Chinese economic interests and threaten the global economic recovery. China is the largest single holder of U.S. Treasury bills.
Sterling was higher against the euro with EUR/GBP sliding 0.39%, to hit 0.8433.
In the euro zone, data showed that the economy grew by 0.3% in the second quarter, unchanged from a preliminary estimate and in line with forecasts.
A separate report showed that the Sentix index of euro zone investor confidence dropped to 6.1, from 6.5 in September as concerns over the political deadlock in the U.S. hurt sentiment. Analysts had expected the index to rise to 10.6 this month.
GBP/USD pulled away from 1.6100, the session high, to hit 1.6067 during U.S. morning trade, still up 0.37%.
Cable was likely to find support at 1.6004, Friday’s low and resistance at 1.6176, Friday’s high.
Republican House Speaker John Boehner said Sunday the House will not support bills to fully reopen the government or increase the U.S. debt ceiling unless the Obama administration agrees to talks aimed at reducing the deficit.
The comments fuelled fears that the political deadlock in Washington will not be resolved by October 17, the date which the Treasury Department has estimated the U.S. could risk an unprecedented default.
China’s vice finance minister warned Monday that a U.S. default could seriously harm Chinese economic interests and threaten the global economic recovery. China is the largest single holder of U.S. Treasury bills.
Sterling was higher against the euro with EUR/GBP sliding 0.39%, to hit 0.8433.
In the euro zone, data showed that the economy grew by 0.3% in the second quarter, unchanged from a preliminary estimate and in line with forecasts.
A separate report showed that the Sentix index of euro zone investor confidence dropped to 6.1, from 6.5 in September as concerns over the political deadlock in the U.S. hurt sentiment. Analysts had expected the index to rise to 10.6 this month.