Forexpros – The pound trimmed losses against the U.S. dollar on Monday, as markets awaited the results of a teleconference of European finance ministers while fears of potential downgrades in the euro zone continued to weigh.
GBP/USD pulled back from 1.5466, the pair’s lowest since December 15 to hit 1.5529 during U.S. morning trade, still down 0.10%.
Cable was likely to find support at 1.5408, the low of December 14 and resistance at 1.5628, the high of December 13.
European Union ministers were to discuss EUR200 billion euros in additional funding through the International Monetary Fund and the details of a recently agreed fiscal plan that was negotiated at a December 9 EU summit.
But market sentiment remained under pressure as risks of credit rating cuts continued to weigh after ratings agency Fitch lowered France’s credit outlook and put six euro zone countries on review on Friday, saying a “comprehensive solution” to the region’s debt crisis was “technically and politically beyond reach.”
Sentiment was also hit earlier following the announcement of North Korean leader Kim Jong il’s death, spurring fears of geopolitical instability in northeast Asia.
Elsewhere, sterling was fractionally higher against the euro with EUR/GBP inching down 0.01%, to hit 0.8389.
Earlier in the day, a report by U.K. property website Rightmove showed that house price inflation fell 2.7% in December after a 3.1% decline the previous month.
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