Forexpros – The pound was down against the U.S. dollar on Monday, tracking the euro lower amid concerns over the ongoing debt crisis in the single currency bloc.
GBP/USD hit 1.5980 during European morning trade, the session low; the pair subsequently consolidated at 1.5992, shedding 0.25%.
Cable was likely to find support at 1.5915, the low of November 2 and resistance at 1.6092, the high of November 1.
Earlier in the day, the yield on Italian 10-year government bonds soared to a euro-lifetime high, amid open dissent within Prime Minister Silvio Berlusconi’s government ahead of a parliamentary vote on public finances on Tuesday.
Elsewhere, Greek Prime Minister George Papandreou announced Sunday that he is to step down, paving the way for the formation of a new coalition government, which will oversee elections and ratify austerity measures to ensure the country receives its next tranche of bailout funds.
Market sentiment was also jittery after euro zone leaders failed to get any concrete pledge for fresh funds to enlarge the capacity of the region’s bailout fund at Friday’s G-20 summit.
Meanwhile, the pound was higher against the euro, with EUR/GBP shedding 0.33% to hit 0.8572.
Also Monday, industry data showed that U.K. house prices rose more-than-expected last month, but fell slightly over the three months to October.
The Halifax house price index rose 1.2% in October compared with a month earlier and was 1.8% lower from a year earlier. Analysts had forecast prices would rise 0.1% on the month and decline 2.3% year-on-year.
Home prices fell 0.3% from the previous three months, the report said.
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