Forexpros – The pound held gains against the U.S. dollar on Monday, amid hopes of a new deal designed to contain the debt crisis in the euro zone.
GBP/USD 1.5594 during European afternoon trade, the pair’s highest since November 23; the pair subsequently consolidated at 1.5559, climbing 0.78%.
The pair was likely to find support at 1.5423, the low of November 25 and resistance at 1.5691, the high of November 22.
Risk sentiment was supported by speculation European Union leaders are moving closer to agreeing on a fiscal pact to halt the spread of the region’s debt crisis.
Earlier Monday, Belgium successfully auctioned EUR2 billion of 10-year bonds in the country’s first debt auction since ratings agency Standard & Poor’s downgraded the country’s rating by one notch on Friday.
In the U.K., an industry report showed that retail sale volumes declined significantly more-than-expected in November, falling at the fastest rate since March 2009.
Also Monday, the Organization for Economic Co-operation and Development cut its growth forecast for the U.K. in 2012 to 0.5% from 1.8% in May, and urged the Bank of England to increase its bond-buying stimulus program by GBP125 billion.
Elsewhere, the pound was down against the euro with EUR/GBP rising 0.11%, to trade at 0.8584.
Later in the day, the U.S. was to release official data on new home sales.
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