Forex Pros – The pound pulled back from a daily high against the U.S. dollar on Tuesday, tracking the euro lower after the leader of Greece’s main opposition party rejected the country’s new austerity plan.
GBP/USD retreated from 1.6178, the daily high to hit 1.6144 during European afternoon trade, still up 0.13% on the day.
Cable was likely to find support at 1.5970, the low of April 1 and resistance at 1.6232, Monday’s high.
Greece’s New Democracy party chief Antonis Samaras said earlier that the new measures would deepen Greece’s recession and do little to close the country’s budget gap.
Greece’s cabinet broadly approved EUR6 billion in new austerity measures on Monday, aimed at narrowing Greece’s budget deficit this year.
Elsewhere, official data showed earlier that U.K. public sector borrowing rose to a record high in April.
The Office for National Statistics said public sector net borrowing totaled GBP7.71billion last month, around GBP2.5 billion higher than the same month last year and the highest reading for a month of April on record.
Economists had expected public borrowing to reach GBP5.0 last month.
Meanwhile, the pound was lower against the euro, with EUR/GBP easing up 0.05% to hit 0.8717.
Also Tuesday, rating agency Moody’s said that it may cut its rating on 14 British lenders, including Lloyds and Royal Bank of Scotland, because U.K. regulators appear less willing to bail out banks in the future.
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