Investing.com – The pound was almost unchanged against the U.S. dollar on Tuesday, trading close to an eight-month low as concerns over the financial crisis in the euro zone and the prospect for more easing by the Bank of England weighed.
GBP/USD hit 1.5656 during early European trade, the daily low; the pair subsequently consolidated at 1.5698, slipping 0.03%.
Cable was likely to find support at 1.5631, Monday’s low and an eight-month trough and resistance at 1.5755, Monday’s high.
Concerns over the debt crisis in the euro zone intensified after Standard & Poor’s downgraded its debt rating on Italy by one notch, citing weak economic growth and increasing political difficulties.
Meanwhile, talks to discuss whether Greece has done enough to access its next tranche of bailout funds ended Monday without reaching an agreement. Greece’s finance minister said the discussions would continue late Tuesday, adding that some work still needed to be done.
Sentiment on the pound remained weak amid speculation that the BoE may resort to fresh monetary easing measures to stimulate growth after a recent slew of soft economic data added to concerns about the fragile U.K. economy.
Fears over the exposure of U.K. lenders to euro zone sovereign debt also weighed.
Elsewhere, the pound was fractionally higher against the euro, with EUR/GBP dipping 0.02% to hit 0.8711.
Later in the day, the U.S. was to publish government data on building permits and housing starts.
GBP/USD hit 1.5656 during early European trade, the daily low; the pair subsequently consolidated at 1.5698, slipping 0.03%.
Cable was likely to find support at 1.5631, Monday’s low and an eight-month trough and resistance at 1.5755, Monday’s high.
Concerns over the debt crisis in the euro zone intensified after Standard & Poor’s downgraded its debt rating on Italy by one notch, citing weak economic growth and increasing political difficulties.
Meanwhile, talks to discuss whether Greece has done enough to access its next tranche of bailout funds ended Monday without reaching an agreement. Greece’s finance minister said the discussions would continue late Tuesday, adding that some work still needed to be done.
Sentiment on the pound remained weak amid speculation that the BoE may resort to fresh monetary easing measures to stimulate growth after a recent slew of soft economic data added to concerns about the fragile U.K. economy.
Fears over the exposure of U.K. lenders to euro zone sovereign debt also weighed.
Elsewhere, the pound was fractionally higher against the euro, with EUR/GBP dipping 0.02% to hit 0.8711.
Later in the day, the U.S. was to publish government data on building permits and housing starts.