Investing.com - The pound fell to nearly three-week lows against the U.S. dollar on Tuesday, as renewed concerns over the outlook for growth in the euro zone weighed on demand for risk related assets.
GBP/USD hit 1.5248 during U.S. morning trade, the pair's lowest since April 24; the pair subsequently consolidated at 1.5235, sliding 0.41%.
Cable was likely to find support at 1.5197, the low of April 23 and resistance at 1.5385, Monday's high.
Sentiment weakened after the ZEW index of German economic sentiment ticked up to 36.4 from 36.3 in April, well below expectations for a reading of 38.3.
The index of current conditions fell to 8.9 from 9.2 in April, indicating that the German economy could struggle to recover from a 0.5% contraction in the fourth quarter.
A separate report showed that euro zone industrial production rose by a seasonally adjusted 1% in March, more than double expectations for a 0.4% increase.
Separately, demand for the greemback continued to be underpinned by speculation over a possible near-term exit from the Federal Reserve’s asset purchase program after recent U.S. data indicated that the economic outlook is improving.
The pound was lower against the euro with EUR/GBP gaining 0.32%, to hit 0.8509.
Also Tuesday, Spain saw borrowing costs fall to the lowest level since 2010 at an auction of 12-month government bonds.
GBP/USD hit 1.5248 during U.S. morning trade, the pair's lowest since April 24; the pair subsequently consolidated at 1.5235, sliding 0.41%.
Cable was likely to find support at 1.5197, the low of April 23 and resistance at 1.5385, Monday's high.
Sentiment weakened after the ZEW index of German economic sentiment ticked up to 36.4 from 36.3 in April, well below expectations for a reading of 38.3.
The index of current conditions fell to 8.9 from 9.2 in April, indicating that the German economy could struggle to recover from a 0.5% contraction in the fourth quarter.
A separate report showed that euro zone industrial production rose by a seasonally adjusted 1% in March, more than double expectations for a 0.4% increase.
Separately, demand for the greemback continued to be underpinned by speculation over a possible near-term exit from the Federal Reserve’s asset purchase program after recent U.S. data indicated that the economic outlook is improving.
The pound was lower against the euro with EUR/GBP gaining 0.32%, to hit 0.8509.
Also Tuesday, Spain saw borrowing costs fall to the lowest level since 2010 at an auction of 12-month government bonds.