Investing.com – The pound extended losses against the U.S. dollar on Tuesday, as rising borrowing costs in Italy and Spain fanned concerns over the euro zone debt crisis and after the release of broadly better-than-expected U.S. data.
GBP/USD hit 1.5813 during U.S. morning trade, the pair’s lowest since October 21; the pair subsequently consolidated at 1.5828, shedding 0.50%.
Cable was likely to find support at 1.5694, the low of October 19 and resistance at 1.5931, the days high.
Concerns over sovereign debt contagion to core euro zone economies mounted as Italian 10-year bond yields rose to near unsustainable levels, climbing above 7% earlier, while the yield on Spanish 10-year bonds rose above 6% for the first time since August and French 10-year bond yields climbed to a euro-era high.
In the U.S., the Commerce Department said retail sales rose more-than-expected in October, increasing 0.5%, while core retail sales also beat expectations, climbing 0.6%.
A separate report showed that producer price inflation in the U.S. eased more-than-expected in October, declining 0.3% compared to expectations for a 0.2% drop.
Meanwhile, the Federal Reserve Bank of New York said that manufacturing activity in the New York-region expanded for the first time in six months in November.
Elsewhere, the pound was slightly higher against the euro, with EUR/GBP slipping 0.09% to hit 0.8561.
In the U.K., official data showed that consumer price inflation in the U.K. eased in October, ticking down to 5%, from a three-year high of 5.2% the previous month.
Analysts had expected CPI to tick down to 5.1% last month.
Following the data, Bank of England Governor Mervyn King reiterated that temporary factors were fuelling price increases and said he expected inflation to fall back close to the central bank’s targeted rate of 2% by the end of 2012, as the economic outlook deteriorates.
GBP/USD hit 1.5813 during U.S. morning trade, the pair’s lowest since October 21; the pair subsequently consolidated at 1.5828, shedding 0.50%.
Cable was likely to find support at 1.5694, the low of October 19 and resistance at 1.5931, the days high.
Concerns over sovereign debt contagion to core euro zone economies mounted as Italian 10-year bond yields rose to near unsustainable levels, climbing above 7% earlier, while the yield on Spanish 10-year bonds rose above 6% for the first time since August and French 10-year bond yields climbed to a euro-era high.
In the U.S., the Commerce Department said retail sales rose more-than-expected in October, increasing 0.5%, while core retail sales also beat expectations, climbing 0.6%.
A separate report showed that producer price inflation in the U.S. eased more-than-expected in October, declining 0.3% compared to expectations for a 0.2% drop.
Meanwhile, the Federal Reserve Bank of New York said that manufacturing activity in the New York-region expanded for the first time in six months in November.
Elsewhere, the pound was slightly higher against the euro, with EUR/GBP slipping 0.09% to hit 0.8561.
In the U.K., official data showed that consumer price inflation in the U.K. eased in October, ticking down to 5%, from a three-year high of 5.2% the previous month.
Analysts had expected CPI to tick down to 5.1% last month.
Following the data, Bank of England Governor Mervyn King reiterated that temporary factors were fuelling price increases and said he expected inflation to fall back close to the central bank’s targeted rate of 2% by the end of 2012, as the economic outlook deteriorates.