Investing.com – The pound pushed higher against the U.S. dollar on Tuesday, after stronger-than-expected German data and a successful Spanish government bond auction, but concerns over potential euro zone downgrades continued to weigh.
GBP/USD pulled away from 1.5565, the daily low, to hit 1.5598 during European afternoon trade, edging up 0.10%.
Cable was likely to find short-term support at 1.5536, Monday’s low and an eight-day low and resistance at 1.5656, Monday’s high.
The ZEW Centre for Economic Research said that its index of German economic sentiment rose for the first time in ten months in December, confounding expectations for a decline but the report said perceptions of current developments remained on a downward trend.
Meanwhile, Spain’s treasury exceeded its target, selling EUR4.94 billion in 12-month and 18-month bonds at lower yields than at a similar auction last month.
Market sentiment remained weak amid concerns over euro zone sovereign downgrades after ratings agency Moody's said Monday that it would review ratings of all European Union member states in the first quarter of 2012, after last week’s summit failed to produce concrete plans to halt the spread of the debt crisis in the region.
In the U.K., official data showed that consumer prices rose 0.2% in November, taking the annual inflation rate to 4.8%, in line with expectations.
Bank of England Chief Economist Spencer Dale said earlier that inflation was likely to fall to just above 3% by the end of the first quarter, adding that the pace of inflation after that would determine the course of monetary policy.
The pound dipped against the euro, with EUR/GBP inching up 0.04% to hit 0.8465.
Later Tuesday, the Federal Reserve was to announce its federal funds rate, while the U.S. was also to release official data on retail sales.
GBP/USD pulled away from 1.5565, the daily low, to hit 1.5598 during European afternoon trade, edging up 0.10%.
Cable was likely to find short-term support at 1.5536, Monday’s low and an eight-day low and resistance at 1.5656, Monday’s high.
The ZEW Centre for Economic Research said that its index of German economic sentiment rose for the first time in ten months in December, confounding expectations for a decline but the report said perceptions of current developments remained on a downward trend.
Meanwhile, Spain’s treasury exceeded its target, selling EUR4.94 billion in 12-month and 18-month bonds at lower yields than at a similar auction last month.
Market sentiment remained weak amid concerns over euro zone sovereign downgrades after ratings agency Moody's said Monday that it would review ratings of all European Union member states in the first quarter of 2012, after last week’s summit failed to produce concrete plans to halt the spread of the debt crisis in the region.
In the U.K., official data showed that consumer prices rose 0.2% in November, taking the annual inflation rate to 4.8%, in line with expectations.
Bank of England Chief Economist Spencer Dale said earlier that inflation was likely to fall to just above 3% by the end of the first quarter, adding that the pace of inflation after that would determine the course of monetary policy.
The pound dipped against the euro, with EUR/GBP inching up 0.04% to hit 0.8465.
Later Tuesday, the Federal Reserve was to announce its federal funds rate, while the U.S. was also to release official data on retail sales.