Investing.com - The pound was trading at a one-month high against the U.S. dollar on Tuesday, shrugging off disappointing U.K. construction data as market sentiment was boosted by optimism over signs of progress in dealing with the debt crisis in the euro zone.
GBP/USD hit 1.6127 during European morning trade, the pair’s highest since November 2; the pair subsequently consolidated at 1.6120, gaining 0.19%.
Cable was likely to find support at 1.6085, the session low and resistance at 1.6174, the high of November 1.
Investor confidence was boosted after Greece launched a scheme to buy back its debt from private investors, as part of an agreement to unlock a new bailout package worth EUR44 billion.
Elsewhere, Spanish bond yields turned lower after Madrid formally requested a bailout to recapitalize its banking sector.
In the U.K., data showed that construction sector activity unexpectedly declined to a three month low in November.
Markit and the Chartered Institute of Purchasing & Supply said that their U.K. construction purchasing managers' index fell to 49.3 in November from a reading of 50.9 in October.
Economists had expected the index to fall to 50.5 last month.
Investors remained wary after a report from the Institute of Supply Management on Monday showed that manufacturing activity in the U.S. declined unexpectedly in November, slumping to a three year low.
Meanwhile, investors continued to watch negotiations between Democrats and Republicans aimed at avoiding a set of spending cuts and tax increases due to come into effect on January 1 if lawmakers cannot reach an agreement on reducing the budget deficit.
The pound was fractionally higher against the euro, with EUR/GBP dipping 0.08% to 0.8105.
Earlier Tuesday, a report by the British Retail Consortium showed that U.K. retail sales ticked up 0.4% in November.
GBP/USD hit 1.6127 during European morning trade, the pair’s highest since November 2; the pair subsequently consolidated at 1.6120, gaining 0.19%.
Cable was likely to find support at 1.6085, the session low and resistance at 1.6174, the high of November 1.
Investor confidence was boosted after Greece launched a scheme to buy back its debt from private investors, as part of an agreement to unlock a new bailout package worth EUR44 billion.
Elsewhere, Spanish bond yields turned lower after Madrid formally requested a bailout to recapitalize its banking sector.
In the U.K., data showed that construction sector activity unexpectedly declined to a three month low in November.
Markit and the Chartered Institute of Purchasing & Supply said that their U.K. construction purchasing managers' index fell to 49.3 in November from a reading of 50.9 in October.
Economists had expected the index to fall to 50.5 last month.
Investors remained wary after a report from the Institute of Supply Management on Monday showed that manufacturing activity in the U.S. declined unexpectedly in November, slumping to a three year low.
Meanwhile, investors continued to watch negotiations between Democrats and Republicans aimed at avoiding a set of spending cuts and tax increases due to come into effect on January 1 if lawmakers cannot reach an agreement on reducing the budget deficit.
The pound was fractionally higher against the euro, with EUR/GBP dipping 0.08% to 0.8105.
Earlier Tuesday, a report by the British Retail Consortium showed that U.K. retail sales ticked up 0.4% in November.