Forex News: Pound Declines In Cautious Trade

Pound Declines In Cautious Trade

(RTTNews) - The pound fell against its major counterparts in the European session on Monday, as investors became cautious about U.S. debt ceiling negotiations to avoid a default.

President Biden and House Speaker McCarthy will meet later today after negotiations had stalled last week.

McCarthy said that the conversation with Biden was productive, but both sides are still apart.

The U.S. could default on its debt as soon as June 1 if Congress fails to raise the borrowing threshold.

Investors focus on key economic data, including the FOMC meeting minutes, the US GDP, and the core PCE price index due this week.

The pound weakened to 4-day lows of 171.19 against the yen and 0.8699 against the euro, off its early highs of 171.78 and 0.8674, respectively. The pound is seen finding support around 160.00 against the yen and 0.88 against the euro.

The pound touched 1.1138 against the franc, its lowest level in more than two weeks. The pound may face support around the 1.105 level.

The pound was down against the greenback, at 1.2413. If it drops further, it may find support around the 1.21 area.

Looking ahead, Eurozone flash consumer confidence for May is due to be released in the New York session.

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