Investing.com – The pound sank against the U.S. dollar on Monday, hitting a 7-day low as Britain’s Chancellor of the Exchequer, George Osborne, pledged a root and branch review of public spending.
GBP/USD fell to a 7-day low of 1.4388 during early European trade; the pair subsequently consolidated around 1.4421, shedding 0.23%.
The pair was likely to find support around 1.4229, the low of May 20 and a 14-month low, and resistance around 1.4769, last Wednesday’s high.
Earlier in the day, Britain’s new coalition government sought to build public support for what will be the deepest budget cuts in a generation. The pound has fallen 11% against the dollar this year amid concern the government will struggle to cut the U.K.’s budget deficit, currently 11.1% of gross domestic product.
The pound was also down against the euro, meanwhile, with EUR/GBP climbing 0.1% to hit 0.8288.
Later Monday, the Federal Reserve was due to publish a report on U.S. consumer credit. The chairman of the Federal Reserve, Ben Bernanke, was also due to speak at an event in Washington D.C.
GBP/USD fell to a 7-day low of 1.4388 during early European trade; the pair subsequently consolidated around 1.4421, shedding 0.23%.
The pair was likely to find support around 1.4229, the low of May 20 and a 14-month low, and resistance around 1.4769, last Wednesday’s high.
Earlier in the day, Britain’s new coalition government sought to build public support for what will be the deepest budget cuts in a generation. The pound has fallen 11% against the dollar this year amid concern the government will struggle to cut the U.K.’s budget deficit, currently 11.1% of gross domestic product.
The pound was also down against the euro, meanwhile, with EUR/GBP climbing 0.1% to hit 0.8288.
Later Monday, the Federal Reserve was due to publish a report on U.S. consumer credit. The chairman of the Federal Reserve, Ben Bernanke, was also due to speak at an event in Washington D.C.