Forexpros – The pound was slightly higher against the U.S. dollar on Monday despite Standard & Poors mass euro zone and European Financial Stability Fund downgrade.
GBP/USD hit a daily low of 1.5278 prior to consolidating at 1.5322 gaining 0.029% on the session.
Cable was likely to find support at 1.5232, the 17 month low and technical resistance exists 1.5366, the high of January 12.
Standard & Poor’s downgraded France to AA+ from AAA with a negative outlook on Friday.
The rating agency slashed Cyprus, Portugal, Italy and Spain two levels.
Long term credit ratings were also lowered on Austria, Malta, Slovakia, and Slovenia. However, Germany, Ireland, Finland, Belgium, Estonia, Netherlands, and Luxembourg had their rating affirmed by S&P.
Meanwhile, the rating agency also downgraded the EFSF, the euro zone’s bail out fund, to AA+ causing additional fear in the region.
France’s debt auction met with weak investor demand although results were an improvement over the last auction.
Elsewhere, the pound was lower against the euro with EUR/GBP dipping 0.04% to hit 0.8273
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