Investing.com – The pound trimmed gains against the U.S. dollar in volatile trade on Wednesday, pulling back from the daily high after the Greek parliament approved an austerity plan designed to avert a sovereign debt default.
GBP/USD pulled away from 1.6057, the daily high, to hit 1.6014 during early U.S. trade, still up 0.09% on the day.
Cable was likely to find support at 1.5910, Tuesday’s low and a five-month low and resistance at 1.6074, the high of June 23.
Greece’s parliament voted 155 to 138, with five members abstaining, in favor of ratifying unpopular austerity measures, as violent protests continued outside parliament buildings.
The plan needed to pass for the indebted nation to secure a EUR12 billion tranche of bailout funds from the European Union and International Monetary Fund.
Had the austerity package been rejected, it could have resulted in the euro zone’s first sovereign debt default, as Greece needs to cover EUR6.6 billion of bonds maturing in August.
Meanwhile, speculation continued that the Bank of England could resume its quantitative easing program as some policymakers believed the outlook for growth remained weak.
The pound was also higher against the euro, with EUR/GBP dipping 0.05% to hit 0.8977.
Also Wednesday, a report showed that pending home sales in the U.S. rose significantly more-than-expected in May, with all regions experiencing gains from a year ago.
The National Association of Realtors said its pending home sales index jumped by 8.2% in May, blowing past expectations for a 2.4% gain.
GBP/USD pulled away from 1.6057, the daily high, to hit 1.6014 during early U.S. trade, still up 0.09% on the day.
Cable was likely to find support at 1.5910, Tuesday’s low and a five-month low and resistance at 1.6074, the high of June 23.
Greece’s parliament voted 155 to 138, with five members abstaining, in favor of ratifying unpopular austerity measures, as violent protests continued outside parliament buildings.
The plan needed to pass for the indebted nation to secure a EUR12 billion tranche of bailout funds from the European Union and International Monetary Fund.
Had the austerity package been rejected, it could have resulted in the euro zone’s first sovereign debt default, as Greece needs to cover EUR6.6 billion of bonds maturing in August.
Meanwhile, speculation continued that the Bank of England could resume its quantitative easing program as some policymakers believed the outlook for growth remained weak.
The pound was also higher against the euro, with EUR/GBP dipping 0.05% to hit 0.8977.
Also Wednesday, a report showed that pending home sales in the U.S. rose significantly more-than-expected in May, with all regions experiencing gains from a year ago.
The National Association of Realtors said its pending home sales index jumped by 8.2% in May, blowing past expectations for a 2.4% gain.