Greek debt dominates Forex as GBP trims losses against USD

As reported by Forexpros, the GB pound trimmed losses on Monday against the US dollar, which was supported by promising euro zone figures, but the sterling remained uncertain as worries over the Greek debt talks continued to dominate.

GBP/USD went from 1.5729, the lowest figure since February 1, and hit 1.5761 during the European afternoon trade, still at 0.33%. Cable hit 1.5705, the low of February 1 while seeing resistance at 1.5847, the high figure from October 17.

Sentiments improved after official numbers showing that German manufacturing orders went up higher-than-expected in December, from rising market demand outside the euro zone. Figures eased worries over the consequences of the euro zone’s finance crunch on the region’s biggest economy.

Earlier on Monday, the EC said Greece had surpassed the deadline for finalizing deals on a second bailout agreement from the IMF and the euro zone, warning that Athens needed to take an urgent decision.

Greek leaders held talks in Athens to explore whether they could agree to conditions and requirements for a EUR130 billion bailout package. Elsewhere, the pound finished higher against the euro as EUR/GBP shed 0.40%, and hit 0.8289.

A report by Halifax on Monday also showed that British house prices increased by 0.6% in January, following a drop of 1% the previous month. Continuing low interest rate levels have supported housing demand, added the report.