Investing.com – The pound erased gains against the U.S. dollar on Monday, dropping to a five-day low as speculation that euro zone interest rates may rise before those in the U.K. weighed on the pound.
GBP/USD retreated from 1.6341, the pair’s highest since Wednesday, to hit 1.6229 during European late afternoon trade, shedding 0.24%.
Cable was likely to find support at 1.6070, the low of February 28 and resistance at 1.6343, last Wednesday’s high and a 13-month high.
On Thursday, ECB President Jean-Claude Trichet said the bank may hike interest rates as soon as next month to tame inflation pressures.
Meanwhile, markets have pared back expectations for a rate hike by the Bank of England, amid concerns about the vulnerability of the U.K. economy to tighter monetary policy.
Also Monday, the U.K. Treasury announced it had appointed Ben Broadbent to the BoE's policy-setting committee to replace policy hawk Andrew Sentance when his term expires at the end of May.
The pound was also down against the euro, with EUR/GBP rising 0.41% to hit 0.8633.
Later in the day, the U.S. was to publish official data on consumer credit.
GBP/USD retreated from 1.6341, the pair’s highest since Wednesday, to hit 1.6229 during European late afternoon trade, shedding 0.24%.
Cable was likely to find support at 1.6070, the low of February 28 and resistance at 1.6343, last Wednesday’s high and a 13-month high.
On Thursday, ECB President Jean-Claude Trichet said the bank may hike interest rates as soon as next month to tame inflation pressures.
Meanwhile, markets have pared back expectations for a rate hike by the Bank of England, amid concerns about the vulnerability of the U.K. economy to tighter monetary policy.
Also Monday, the U.K. Treasury announced it had appointed Ben Broadbent to the BoE's policy-setting committee to replace policy hawk Andrew Sentance when his term expires at the end of May.
The pound was also down against the euro, with EUR/GBP rising 0.41% to hit 0.8633.
Later in the day, the U.S. was to publish official data on consumer credit.