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Forex - USD/GBP down as euro zone delays Greece loan decision

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Forex Pros - The pound was lower against the U.S. dollar on Monday, after euro zone finance ministers delayed a decision on emergency loans for Greece, adding to pressure on Greek Prime Minister George Papandreou to pass unpopular economic reforms.

GBP/USD hit 1.6110 during early European trade, the daily low; the pair subsequently consolidated at 1.6144, shedding 0.30%.

Cable was likely to find short-term support at 1.6077, last Thursday's low and an almost one-month low and short-term resistance at 1.6224, the high of the same day.

On Sunday, finance ministers from the 17-nation single currency bloc said that a new bailout package for Greece would be decided upon by early July and would be dependent on the Greek parliament passing a controversial new austerity package.

Earlier Monday, U.K. property website Rightmove said that that house prices would finish 2011 with an annual gain of 2.0%, in contrast to its December forecast for a 2.5% fall.

Rightmove said asking prices rose 0.6% in June after a 1.3% rise in May, reaching their highest level since an all-time high hit in May 2008.

Meanwhile, the pound was higher against the euro, with EUR/GBP shedding 0.35% to hit 0.8807.

Later in the day, Bank of England policymaker Adam Posen was to speak; his comments would be closely watched for his views on the future direction of monetary policy.

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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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