Investing.com – The pound remained down against the broadly stronger U.S. dollar on Monday, as renewed fears over a default by Greece and the possibility of more economic stimulus from the Bank of England weighed.
GBP/USD hit 1.5685 during European afternoon trade, the pair’s lowest since January 12; the pair subsequently consolidated at 1.5718, shedding 0.45%.
Cable was likely to find support at 1.5685, the days low and resistance at 1.5814, the high of September 14.
Over the weekend, European Union finance ministers warned Greece that it may not receive its next EUR8 billion tranche of aid due next month if the government fails to meet deficit reduction targets.
Officials from the EU and the International Monetary Fund were to hold talks with Greek Finance Minister Evangelos Venizelos later Monday to discuss extra steps Athens can take to qualify for its next tranche of aid.
The pound came under further pressure amid speculation that the BoE may implement fresh monetary stimulus measures to shore up growth after a recent string of soft economic data added to concerns that growth in the U.K. is faltering.
Earlier in the day, the BoE’s quarterly bulletin said the bond-purchase plan it implemented between March 2009 and early 2010 had an “economically significant” effect on Britain’s financial system, but said the impact of future purchases may differ.
The pound was also weighed by concerns over the exposure of U.K. lenders to euro zone sovereign debt.
Elsewhere, the pound was higher against the euro, with EUR/GBP shedding 0.56% to hit 0.8690.
Also Monday, U.S. President Barack Obama was to speak about the outlook for the economy, in Washington.
GBP/USD hit 1.5685 during European afternoon trade, the pair’s lowest since January 12; the pair subsequently consolidated at 1.5718, shedding 0.45%.
Cable was likely to find support at 1.5685, the days low and resistance at 1.5814, the high of September 14.
Over the weekend, European Union finance ministers warned Greece that it may not receive its next EUR8 billion tranche of aid due next month if the government fails to meet deficit reduction targets.
Officials from the EU and the International Monetary Fund were to hold talks with Greek Finance Minister Evangelos Venizelos later Monday to discuss extra steps Athens can take to qualify for its next tranche of aid.
The pound came under further pressure amid speculation that the BoE may implement fresh monetary stimulus measures to shore up growth after a recent string of soft economic data added to concerns that growth in the U.K. is faltering.
Earlier in the day, the BoE’s quarterly bulletin said the bond-purchase plan it implemented between March 2009 and early 2010 had an “economically significant” effect on Britain’s financial system, but said the impact of future purchases may differ.
The pound was also weighed by concerns over the exposure of U.K. lenders to euro zone sovereign debt.
Elsewhere, the pound was higher against the euro, with EUR/GBP shedding 0.56% to hit 0.8690.
Also Monday, U.S. President Barack Obama was to speak about the outlook for the economy, in Washington.