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Forex - GBP/USD up but concerns over impact of Japan quake weigh

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Forex Pros - The pound was higher against the U.S. dollar on Monday, but gains were limited amid concerns over the global economic impact from Japan's devastating earthquake and tsunami while Japanese officials struggled to contain a nuclear emergency.

GBP/USD hit 1.6150 during European late afternoon trade, the pair's highest since Thursday, the pair subsequently consolidated at 1.6127, gaining 0.29%.

Cable was likely to find support at 1.5976, Friday's low and a three-week low and resistance at 1.6212, Thursday's high.

Earlier Monday, the Bank of Japan announced that it was pumping a record JPY15 trillion into the financial system and doubling the size of its asset-purchase program to JPY10 trillion to bolster confidence in the economy, following Friday's 8.9 magnitude earthquake and tsunami.

Meanwhile, Japan's government news agency said earlier that a reactor at the Fukushima Daiichi nuclear plant, north of Tokyo, lost its cooling system, following a hydrogen explosion at another reactor and a fuel rod meltdown could not be ruled out.

The pound was also higher against the yen, with GBP/JPY rising 0.25% to hit 131.93.

Also Monday, Japan's Prime Minister Naoto Kan said the situation at the nuclear plant was alarming, and the earthquake had thrown Japan into "the most severe crisis since World War II".

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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