Investing.com - The pound pushed higher against the U.S. dollar on Tuesday, after better-than-expected Chinese growth data boosted demand for riskier assets, but sterling’s gains were limited amid ongoing uncertainty over the debt crisis in the euro zone.
GBP/USD hit 1.5387 during European morning trade, the pair’s highest since Friday; the pair subsequently consolidated at 1.5369, gaining 0.28%.
Cable was likely to find support at 1.5276, Monday’s low and resistance at 1.5490, the high of January 11.
Chinese gross domestic product grew at an annualized rate of 8.9% in the fourth quarter, slowing from the previous quarter’s 9.1% rate, but slightly better than expectations for an 8.8% increase.
The data overshadowed a move by Standard & Poor’s to downgrade the triple-A rating of the euro zone’s bailout fund by one notch, following Friday’s downgrade of nine euro zone sovereigns, including France.
Meanwhile, the threat of a default by Greece continued, as talks aimed at negotiating a restructuring of the country’s debts remained deadlocked, amid disagreements over a bond swap with private creditors.
Elsewhere, the pound was lower against the euro, with EUR/GBP adding 0.41% to hit 0.8300.
Later in the day, the U.K. was to publish official data on consumer price inflation, while Bank of England Governor Mervyn King was to testify on the Financial Stability Report before the Treasury Committee.
Also Tuesday, the U.S. was to produce a report on manufacturing activity in New York State.
GBP/USD hit 1.5387 during European morning trade, the pair’s highest since Friday; the pair subsequently consolidated at 1.5369, gaining 0.28%.
Cable was likely to find support at 1.5276, Monday’s low and resistance at 1.5490, the high of January 11.
Chinese gross domestic product grew at an annualized rate of 8.9% in the fourth quarter, slowing from the previous quarter’s 9.1% rate, but slightly better than expectations for an 8.8% increase.
The data overshadowed a move by Standard & Poor’s to downgrade the triple-A rating of the euro zone’s bailout fund by one notch, following Friday’s downgrade of nine euro zone sovereigns, including France.
Meanwhile, the threat of a default by Greece continued, as talks aimed at negotiating a restructuring of the country’s debts remained deadlocked, amid disagreements over a bond swap with private creditors.
Elsewhere, the pound was lower against the euro, with EUR/GBP adding 0.41% to hit 0.8300.
Later in the day, the U.K. was to publish official data on consumer price inflation, while Bank of England Governor Mervyn King was to testify on the Financial Stability Report before the Treasury Committee.
Also Tuesday, the U.S. was to produce a report on manufacturing activity in New York State.