Investing.com - The pound moved higher against the broadly weaker dollar on Monday as a lack of progress over the U.S. government shutdown and the risk of a possible U.S. default curbed investor demand for the greenback.
GBP/USD hit 1.6056 during European morning trade, the session high; the pair subsequently consolidated at 1.6054, gaining 0.28%.
Cable was likely to find support at 1.5978, the low of September 25 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 Democrats agree 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.
Meanwhile, delays in U.S. economic data releases fuelled expectations that the Federal Reserve will hold off on any move to scale back its stimulus program.
The shutdown meant that Friday’s scheduled release of the U.S. nonfarm payrolls report for September was postponed and no new date was given for the release of the data.
Elsewhere, the World Bank cut its economic growth forecast for China on Monday. The Bank said it now expects the Chinese economy to expand by 7.5% this year, down from its April forecast of 8.3%. For 2014, the forecast was cut from 8% to 7.7%.
Sterling was almost unchanged against the euro, with EUR/GBP dipping 0.04% to 0.8462.
The euro zone was to release revised data on second quarter growth later Monday.
GBP/USD hit 1.6056 during European morning trade, the session high; the pair subsequently consolidated at 1.6054, gaining 0.28%.
Cable was likely to find support at 1.5978, the low of September 25 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 Democrats agree 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.
Meanwhile, delays in U.S. economic data releases fuelled expectations that the Federal Reserve will hold off on any move to scale back its stimulus program.
The shutdown meant that Friday’s scheduled release of the U.S. nonfarm payrolls report for September was postponed and no new date was given for the release of the data.
Elsewhere, the World Bank cut its economic growth forecast for China on Monday. The Bank said it now expects the Chinese economy to expand by 7.5% this year, down from its April forecast of 8.3%. For 2014, the forecast was cut from 8% to 7.7%.
Sterling was almost unchanged against the euro, with EUR/GBP dipping 0.04% to 0.8462.
The euro zone was to release revised data on second quarter growth later Monday.