Forexpros – The pound was almost unchanged against the U.S. dollar on Monday, as sustained worries over a possible Greek exit from the euro zone and the handling of the region’s financial crisis continued to weigh on investor confidence.
GBP/USD hit 1.5780 during U.S. morning trade, the daily low; the pair subsequently consolidated at 1.5815, edging down 0.01%.
Cable was likely to find support at 1.5730, the low of May 18 and a two-month low and resistance at 1.5860, the high of March 16.
Sterling rose to a two-day high against the greenback earlier, after a weekend summit of the Group of Eight nations saw leaders affirm that they want Greece to remain in the euro zone, but leaders failed to reach an agreement on how to calm market turmoil stemming from the crisis in the region.
Concerns over political turmoil in Greece also eased after opinion polls indicated that pro-bailout party, New Democracy was leading the polls ahead of fresh elections, due to be held on June 17.
However, investors remained wary amid fears over the implications of a Greek exit from the euro area, while concerns over the health of Spain’s banking sector also weighed.
Demand for the pound remained weaker after last week’s Bank of England inflation report warned of the risk to the U.K. economic recovery stemming from the euro zone crisis and sparked speculation over the possibility of fresh easing measures from the central bank.
Elsewhere, sterling was hovering just above a two-week low against the euro with EUR/GBP falling 0.15%, to hit 0.8066.
Markets were looking ahead to a meeting between German Finance Minister Wolfgang Schaeuble and his newly appointed French counterpart, Pierre Moscovici, later in the day, as European Union leaders prepared for Wednesday’s summit meeting.
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