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Forex - GBP/USD eases off 2-month lows as sentiment improves

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Investing.com -

Investing.com - The pound edged up against the U.S. dollar on Monday, easing off a two-month trough as concerns over geopolitical tensions in Ukraine and the Middle East began to ease, supporting demand for risk-related assets.

GBP/USD hit 1.6795 during European morning trade, the session high; the pair subsequently consolidated at 1.6792, edging up 0.11%.

Cable was likely to find support at 1.6739, the low of June 11 and resistance at 1.6831, Friday's high.

Market sentiment improved on Monday following reports Russia ended military exercises it was holding close to the border with Ukraine, but investors were continuing to monitor developments in the region closely.

News of a fresh 72-hour ceasefire between Israel and Hamas in Gaza which came into effect on Sunday also eased concerns over geopolitical instability in the Middle East.

Separately, demand for the safe-haven dollar had weakened on Friday after the U.S. launched airstrikes in Iraq.

The pound had come under pressure after official data on Friday showed that the U.K. trade deficit widened unexpectedly in June.

Sterling was also higher against the euro, with EUR/GBP shedding 0.28% to 0.7973.

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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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