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Forex - Pound slides lower against stronger dollar

Published 12/15/2014, 07:45 AM
Pound falls against dollar in risk-off trade
GBP/USD
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Investing.com - The pound was lower against the U.S. dollar on Monday, as recent concerns over the drop in oil prices and uncertainty over the outcome of the Federal Reserve's next policy meeting continued to weigh on market sentiment.

GBP/USD hit 1.5659 during European afternoon trade, the pair's lowest since December 11; the pair subsequently consolidated at 1.5670, sliding 0.30%.

Cable was likely to find support at 1.5624, the low of December 9 and resistance at 1.5756, the high of December 11.

Investor confidence was hit amid concerns over the economic impact of the continuing rout in oil prices and its effect on energy companies.

Markets were also jittery ahead of the Fed's upcoming policy meeting, as ongoing speculation over the prospects for a U.S. rate hike next year fuelled expectations that the U.S. central bank could adjust its forward guidance.

Sterling was steady against the euro, with EUR/GBP inching up 0.06% to 0.7933.

The euro remained under pressure after a surprise decision by the Greek government to bring forward a parliamentary vote for president to this week.

The move raised the prospect of snap elections if Prime Minister Antonis Samaras’ candidate is not approved by parliament, which could see the anti-bailout Syriza party take power.

Since the decision, government leaders have expressed fears that Greece could be forced to exit the euro zone if parliament failed to elect a new head of state by December 29.

Later in the day, the U.S. was to release reports on manufacturing activity in the New York region and industrial production.

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