Investing.com - The pound trimmed gains against the U.S. dollar on Wednesday, as concerns over a Greek parliamentary vote weighed on market sentiment, undermining relief over a clear victory for President Barack Obama in the U.S. presidential elections.
GBP/USD pulled back from 1.6041, the pair’s highest since November 2, to hit 1.6013 during European morning trade, still up 0.11% for the day.
Cable was likely to find support at 1.5956, Monday’s low and resistance at 1.6132, the high of November 2.
President Obama defeated Republican contender Mitt Romney, securing the 270 votes in the electoral college needed to win the race.
The win for Obama was seen as boosting the chances that the Federal Reserve’s policy of quantitative easing will remain in place.
Investors’ attention turned to the fiscal cliff, USD500 billion of automatic tax hikes and spending cuts due to come into effect on January 1 unless lawmakers can reach an agreement, clouding the outlook for U.S. and global growth.
Market sentiment was also hit by uncertainty ahead of a Greek parliamentary vote later in the day, on an austerity bill necessary for Athens to secure its next installment of bailout funds.
The pound was fractionally lower against the euro, with EUR/GBP edging up 0.08% to 0.8017.
Later Wednesday, the euro zone was to produce official data on retail sales, while Germany was to produce official data on industrial production.
GBP/USD pulled back from 1.6041, the pair’s highest since November 2, to hit 1.6013 during European morning trade, still up 0.11% for the day.
Cable was likely to find support at 1.5956, Monday’s low and resistance at 1.6132, the high of November 2.
President Obama defeated Republican contender Mitt Romney, securing the 270 votes in the electoral college needed to win the race.
The win for Obama was seen as boosting the chances that the Federal Reserve’s policy of quantitative easing will remain in place.
Investors’ attention turned to the fiscal cliff, USD500 billion of automatic tax hikes and spending cuts due to come into effect on January 1 unless lawmakers can reach an agreement, clouding the outlook for U.S. and global growth.
Market sentiment was also hit by uncertainty ahead of a Greek parliamentary vote later in the day, on an austerity bill necessary for Athens to secure its next installment of bailout funds.
The pound was fractionally lower against the euro, with EUR/GBP edging up 0.08% to 0.8017.
Later Wednesday, the euro zone was to produce official data on retail sales, while Germany was to produce official data on industrial production.