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Forex - Pound slips versus dollar as Osborne set to unveil cuts

Published 05/24/2010, 05:21 AM
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EUR/GBP
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Investing.com – The pound fell slightly against the U.S. dollar on Monday, retreating from a 1-week high as Britain's Chancellor of the Exchequer, George Osborne, was set to unveil a GBP 6 billion package of spending cuts.

GBP/USD hit 1.4528 during early European trade, the pair's highest since last Monday. Cable subsequently retreated to 1.4441, shedding 0.1%.

The pair was likely to find support at 1.423, Thursday's low and a 13-month low, and resistance at 1.4917, the high of May 13.

Later Monday, Osborne was set to announce a new era of austerity for state employees and public bodies, the British paper The Telegraph reported.

Sterling rose versus the euro, meanwhile, with EUR/GBP plunging 0.97% to reach 0.861.

Also Monday, an industry group was set to release key data on existing U.S. home sales, a leading indicator of economic health. Later in the day, Adam Posen, a member of the Bank of England's Monetary Policy Committee, was due to speak at an event in London. Traders were likely to scrutinize his comments for clues to future shifts in monetary policy.

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