Forexpros – The pound fell to a nine-week low against the broadly stronger dollar on Monday, as fears that the debt crisis in the euro zone is worsening bolstered safe haven demand.

GBP/USD hit 1.5792 during early European trade, the pair’s lowest since July 12; the pair subsequently consolidated at 1.5813, shedding 0.50%.

Cable was likely to find support at 1.5717, the low of January 13 and resistance at 1.5862, the days high.

The euro was hit by media reports that Germany’s government has plans to insulate their country’s banking sector in the event that Greece is forced to default on its debts.

Meanwhile, last week’s resignation of European Central Bank governing council member Juergen Stark highlighted divisions among senior policymakers over the handling of the region’s debt crisis.

The pound remained under pressure as a string of recent soft U.K. economic data fuelled speculation that the Bank of England may implement fresh stimulus measures to prop up U.K. growth.

Elsewhere, the pound was higher against the euro, with EUR/GBP slipping 0.12% to hit 0.8587.

Later in the day, German Chancellor Angela Merkel was to hold talks on the debt crisis with European Commission President Jose Manuel Barroso.

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