The pound strengthened against its major rivals in European deals on Monday, as European stocks rose after the European leaders entered agreement on a third bailout package for Greece, which will allow the country to remain in the currency bloc.
The deal, which was hammered after 16 hours of talks between the leaders of eurozone nations at Brussels, require Greek government to make more profound changes to pensions, energy, labor and product markets, and scale up the privatization program.
European Council President Donald Tusk said Eurozone finance ministers would work with the institutions to swiftly take forward the negotiations and would hold urgent discussions on providing bridge-financing to Greece.
In the previous session, the pound was steady against its major rivals, except the yen.
The pound climbed to an 11-day high of 1.4751 against the franc, 6-day highs of 1.5588 against the greenback and 0.7106 against the euro, off early lows of 1.4559, 1.5490 and 0.7201, respectively. The pound ended last week’s deals at 1.4549 against the franc, 1.5511 against the greenback and 0.7182 against the euro. The pound is seen finding resistance around 1.48 against the franc, 1.566 against the greenback and 0.70 against the euro.
The pound hit 192.32 against the yen, a 10-day high, from an early low of 189.31. The pair was worth 190.35 when it ended Friday’s trading. On the upside, 195.00 is seen as the next resistance level for the pound-yen pair.
The latest figures from the Ministry of Economy, Trade and Industry showed that Japan’s industrial production dropped less than initially estimated in May.
Industrial production declined a seasonally adjusted 2.1 percent month-over-month in May, revised down from a 2.2 percent drop in the flash data. In April, production had risen 1.2 percent.
Looking ahead, U.S. Federal budget balance for June is set to be announced in the New York session.
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