Investing.com - The pound rose to session highs against the broadly weaker dollar on Monday as U.S. lawmakers remained at loggerheads over a deal to raise the debt ceiling before a deadline to avert a sovereign debt default.
GBP/USD hit 1.5998 during European afternoon trade, the session high; the pair subsequently consolidated at 1.5991, gaining 0.29%.
Cable was likely to find support at 1.5922, Friday’s low and resistance at 1.6070, the high of September 23.
Negotiations between the White House and House Republicans broke down over the weekend, after President Barack Obama rejected Republican proposals for a short-term debt ceiling increase.
If a deal to raise the government borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
World finance ministers and central bank heads in Washington for the annual meeting of the International Monetary Fund and World Bank over the weekend called for “urgent action” to break the deadlock, warning of the negative impact on the global economic recovery.
Market sentiment was also hit after Chinese trade data over the weekend showed that exports unexpectedly slowed in September, sparking renewed concerns over the outlook for global demand.
Elsewhere, sterling was slightly higher against the dollar, with EUR/GBP dipping 0.09% to 0.8482.
GBP/USD hit 1.5998 during European afternoon trade, the session high; the pair subsequently consolidated at 1.5991, gaining 0.29%.
Cable was likely to find support at 1.5922, Friday’s low and resistance at 1.6070, the high of September 23.
Negotiations between the White House and House Republicans broke down over the weekend, after President Barack Obama rejected Republican proposals for a short-term debt ceiling increase.
If a deal to raise the government borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
World finance ministers and central bank heads in Washington for the annual meeting of the International Monetary Fund and World Bank over the weekend called for “urgent action” to break the deadlock, warning of the negative impact on the global economic recovery.
Market sentiment was also hit after Chinese trade data over the weekend showed that exports unexpectedly slowed in September, sparking renewed concerns over the outlook for global demand.
Elsewhere, sterling was slightly higher against the dollar, with EUR/GBP dipping 0.09% to 0.8482.