Forex Pros – The pound extended losses against the U.S. dollar on Monday, falling to a daily low as uncertainty over possible euro zone sovereign debt restructuring added to overall risk aversion and lifted the greenback.
GBP/USD hit 1.6160 during European afternoon trade, the daily low; the pair subsequently consolidated at 1.6178, shedding 0.11%.
Cable was likely to find short-term support at 1.6145, Friday’s low and a six-week low and resistance at 1.6308, last Friday’s high.
EU finance ministers were to meet later in the day to discuss further support for Greece which is struggling to meet the terms of a EUR110 billion EU/ International Monetary Fund bailout last year.
However, the situation was complicated by the weekend arrest of the head of the IMF Dominique Strauss-Kahn on sexual assault charges. Analysts were concerned about the impact of Mr. Strauss-Kahn’s absence from the meeting.
Meanwhile, the pound was slightly lower against the euro, with EUR/GBP easing up 0.08% to hit 0.8722.
Earlier in the day, a report by U.K. property website Rightmove showed that U.K. house prices rose to an almost three-year high in May.
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