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Forex - Pound drops against broadly stronger dollar

Published 03/10/2015, 05:59 AM
Pound slides lower vs. greenback amid U.S. rate hike expectations
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Investing.com - The pound dropped against the U.S. counterpart on Tuesday, as growing expectations for a near-term U.S. rate hike continued to lend broad support to the greenback.

GBP/USD hit 1.5029 during European morning trade, the session low; the pair subsequently consolidated at 1.5052, declining 0.51%.

Cable was likely to find support at 1.4986, the low of February 3 and resistance at 1.5135, Monday's high.

The dollar remained broadly supported after the latest U.S. jobs report heigthened expectations for higher interest rates.

The Fed is expected to begin raising interest rates around the middle of this year and investors were looking ahead to next week’s policy statement to see if it would drop its reference to being patient before raising rates.

Sterling was higher against the euro, with EUR/GBP sliding 0.41% to 0.7143.

Sentiment on the single currency was vulnerable after European Central Bank President Mario Draghi told Greek officials at a meeting on Monday that they must let euro-area representatives return to Athens and examine the government's books in order to obtain more aid.

Greece reportedly agreed to allow experts representing the European Commission, ECB and International Monetary Fund to start work in Athens on Wednesday.

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