Investing.com - The pound erased losses against the U.S. dollar on Monday, but remained under pressure as renewed concerns over the handling of the debt crisis in the euro zone continued to dampen market sentiment.
GBP/USD pulled away from 1.5073 during U.S. morning trade, the the session low; the pair subsequently consolidated at 1.5112, easing up 0.02%.
Cable was likely to find support at 1.5014, the low of March 6 and resistance at 1.5175, Friday’s high.
On Saturday, the European Union and International Monetary Fund reached an agreement on a EUR10 billion bailout for Cyprus. In return, the country’s creditors demanded that bank customers must pay a one-time tax on deposits.
The agreement marked the first time since the onset of the euro zone debt crisis that depositors have been forced to take a haircut in return for financial aid and triggered a run on cash machines in Cyprus over the weekend.
Market sentiment found some support however, following reports that the government in Cyprus was preparing a new deposit tax proposal to lessen the impact on smaller depositors.
Sterling was sharply higher against the euro with EUR/GBP tumbling 1.03%, to hit 0.8565.
Also Monday, official data showed that the euro zone trade surplus narrowed to EUR9 billion in January, compared to expectations for a deficit of EUR10.9 billion.
GBP/USD pulled away from 1.5073 during U.S. morning trade, the the session low; the pair subsequently consolidated at 1.5112, easing up 0.02%.
Cable was likely to find support at 1.5014, the low of March 6 and resistance at 1.5175, Friday’s high.
On Saturday, the European Union and International Monetary Fund reached an agreement on a EUR10 billion bailout for Cyprus. In return, the country’s creditors demanded that bank customers must pay a one-time tax on deposits.
The agreement marked the first time since the onset of the euro zone debt crisis that depositors have been forced to take a haircut in return for financial aid and triggered a run on cash machines in Cyprus over the weekend.
Market sentiment found some support however, following reports that the government in Cyprus was preparing a new deposit tax proposal to lessen the impact on smaller depositors.
Sterling was sharply higher against the euro with EUR/GBP tumbling 1.03%, to hit 0.8565.
Also Monday, official data showed that the euro zone trade surplus narrowed to EUR9 billion in January, compared to expectations for a deficit of EUR10.9 billion.