Investing.com – The pound retreated from a five-week high against the U.S. dollar on Monday, weighed by concerns that upcoming U.K. data on second quarter economic growth could be weaker-than-expected.
GBP/USD pulled away from 1.6345, the pair’s highest since June 15, to hit 1.6274 during early U.S. trade, sliding 0.16%.
Cable was likely to find support at 1.6120, the low of July 21 and resistance at 1.6382, the high of June 15.
If Tuesday’s data showed weaker-than-expected economic growth or a contraction it would underline expectations that the Bank of England will keep interest rates on hold for the rest of this year and add to concerns that the central bank may lean towards further monetary stimulus to boost growth.
Earlier Monday, the British Banker's Association said mortgage approvals in the U.K. rose slightly more-than-expected in June, as consumers pushed back expectations for a near-term interest rate hike by the BoE.
Meanwhile, fears over a possible U.S. default escalated after talks between President Barack Obama and congressional leaders, aimed at raising the country’s USD14.3 trillion debt ceiling, broke down over the weekend.
House Speaker John Boehner told Republican lawmakers on a conference call Sunday evening that no "grand deal" on raising the debt ceiling was possible with President Barack Obama.
The pound was unchanged against the euro, with EUR/GBP trading at 0.8809.
Also Monday, Moody's cut Greece’s sovereign debt rating by three notches to Ca, just one notch above default, after euro zone leaders last week agreed to another EUR109 billion in aid for the indebted nation, combined with EUR37 billion from the private sector.
Moody’s said the new aid package set a negative precedent for the creditors of other indebted nations.
GBP/USD pulled away from 1.6345, the pair’s highest since June 15, to hit 1.6274 during early U.S. trade, sliding 0.16%.
Cable was likely to find support at 1.6120, the low of July 21 and resistance at 1.6382, the high of June 15.
If Tuesday’s data showed weaker-than-expected economic growth or a contraction it would underline expectations that the Bank of England will keep interest rates on hold for the rest of this year and add to concerns that the central bank may lean towards further monetary stimulus to boost growth.
Earlier Monday, the British Banker's Association said mortgage approvals in the U.K. rose slightly more-than-expected in June, as consumers pushed back expectations for a near-term interest rate hike by the BoE.
Meanwhile, fears over a possible U.S. default escalated after talks between President Barack Obama and congressional leaders, aimed at raising the country’s USD14.3 trillion debt ceiling, broke down over the weekend.
House Speaker John Boehner told Republican lawmakers on a conference call Sunday evening that no "grand deal" on raising the debt ceiling was possible with President Barack Obama.
The pound was unchanged against the euro, with EUR/GBP trading at 0.8809.
Also Monday, Moody's cut Greece’s sovereign debt rating by three notches to Ca, just one notch above default, after euro zone leaders last week agreed to another EUR109 billion in aid for the indebted nation, combined with EUR37 billion from the private sector.
Moody’s said the new aid package set a negative precedent for the creditors of other indebted nations.