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Forex - GBP/USD drops on European bond snag

Published 06/03/2012, 10:45 PM
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Investing.com - The pound weakened against the dollar on Monday after Germany said it opposed taking part in a single European bond issue financed by all eurozone countries to prop up debt-ridden countries like Greece.
 
In Asian trading on Monday, GBP/USD hit 1.5355, down 0.05%, up from a session low of 1.5342 and off from a high of 1.5376.

The pair was likely to find support at 1.5268 the low of June 1, and resistance at 1.5436, the high of June 1.

The dollar, which took a hit on a disappointing May jobs report, rose against most major currencies on talk Germany remains opposed to participating in a Euro Bond issue, a single debt instrument backed by all eurozone countries designed to prop up indebted eurozone members.

The U.S. added a net 69,000 jobs in May, far below expectations for a gain of around 150,000 jobs.

The news sparked demand for the dollar, as U.K. markets were closed on holiday Monday.

Meanwhile, weaker-than-expected Chinese manufacturing and service-sector data pushed the dollar up and other major currencies down, including the pound.

The pound, meanwhile, was up against the euro and up against the yen, with EUR/GBP down 0.27% and trading at 0.8072 and GBP/JPY up 0.13% at 120.01.








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