Forexpros – The pound remained lower against the U.S. dollar on Monday, as markets were jittery ahead of a teleconference of European finance ministers amid ongoing concerns of mass downgrades in the single currency bloc.
GBP/USD hit 1.5466 during European afternoon trade, the pair’s lowest since December 15; the pair subsequently consolidated at 1.5488, shedding 0.36%.
Cable was likely to find support at 1.5408, the low of December 14 and resistance at 1.5594, the high of November 28.
European Union finance ministers were to discuss plans to provide up to EUR200 billion in loans to the International Monetary Fund, as well as changes to the EU treaty that would allow a permanent EUR500 billion bailout fund to be established.
Meanwhile, investors remained concerned over the possibility of mass credit rating downgrades in the euro zone after Fitch Ratings put six euro zone nations on watch for downgrades on Friday, saying a “comprehensive solution” to the region’s debt crisis was “technically and politically beyond reach.”
Moody’s Investors Service also downgraded Belgium two notches.
The greenback remained supported as fears of geopolitical instability in northeast Asia escalated earlier amid uncertainty over the future leadership of North Korea.
Elsewhere, sterling was down against the euro with EUR/GBP advancing 0.16%, to trade at 0.8403.
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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