Forex Pros – The pound pulled back from a five-month low against the U.S. dollar on Monday, tracking the euro higher amid optimism over a deal to rollover Greek government debt, ahead of a crucial Greek austerity vote.
GBP/USD pulled away from 1.5914, the pair’s lowest since January 31, to hit 1.5968 during European early afternoon trade, easing up 0.07%.
Cable was likely to find support at 1.5819, the low of January 31 and resistance at 1.6046, Friday’;s high.
Over the weekend, French lenders proposed a plan to reinvest half of the proceeds from maturing Greek government bonds into new 30-year Greek bonds.
European governments have said they want private creditors to roll over as much as EUR30 billion worth of Greek government bonds.
Greece’s Prime Minister George Papandreou needs to secure parliamentary approval for a EUR28.4 billion, five-year austerity package on Wednesday, in order to access a EUR12 billion bailout from the European Union and the International Monetary Fund.
If the plan is not passed, it could result in the euro zone’s first sovereign debt default, as Greece needs to cover EUR6.6 billion of bonds maturing in August.
Meanwhile, the pound was slightly lower against the euro, with EUR/GBP easing up 0.05% to hit 0.8896.
Later Monday, the U.S. was to publish official data on personal earnings and expenditure as well as data on the consumer price index.
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