Investing.com – The pound snapped two days of declines against the U.S. dollar on Wednesday, rising to a daily high in low volume year-end trade, amid indications that the U.S. economic recovery was faltering.
GBP/USD hit 1.5411 during late Asian trade, a daily high; the pair subsequently consolidated at 1.5394, climbing 0.16%.
The pair was likely to find support at 1.5295, the low of September 7, and resistance at 1.5510, Tuesday’s high.
Economic data released on Tuesday raised concerns over the strength of the U.S. economic recovery after industry data showed that the S&P/Case-Shiller home price index fell more-than-expected in October, declining by 0.8%, after rising by a revised 0.4% in September. Analysts expected the house price index to fall by 0.1% in October.
Commenting on the report, David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s said, “The double-dip is almost here, as six cities set new lows for the period since the 2006 peaks. There is no good news in October’s report. Home prices across the country continue to fall.”
Meanwhile, a separate report showed that the Conference Board’s index of consumer confidence fell unexpectedly to 52.5 in December, after rising to a revised 55.3 in November. Analysts had expected the index to rise to 56.1 in December.
Commenting on the report, director of The Conference Board Consumer Research Center Lynn Franco said, “Consumers' assessment of the current state of the economy and labor market remains tepid, and their outlook remains cautious. Thus, all signs continue to suggest that the economic expansion will continue well into 2011, but that the pace of growth will remain moderate."
Elsewhere, the pound was down against the euro, with EUR/GBP gaining 0.08% to hit 0.8542.
Later in the day, the Bank of England was to publish a quarterly report on housing equity withdrawal, which is the change in the total value of new home-secured loans that are not used for home purchases or improvements.
GBP/USD hit 1.5411 during late Asian trade, a daily high; the pair subsequently consolidated at 1.5394, climbing 0.16%.
The pair was likely to find support at 1.5295, the low of September 7, and resistance at 1.5510, Tuesday’s high.
Economic data released on Tuesday raised concerns over the strength of the U.S. economic recovery after industry data showed that the S&P/Case-Shiller home price index fell more-than-expected in October, declining by 0.8%, after rising by a revised 0.4% in September. Analysts expected the house price index to fall by 0.1% in October.
Commenting on the report, David M. Blitzer, Chairman of the Index Committee at Standard & Poor’s said, “The double-dip is almost here, as six cities set new lows for the period since the 2006 peaks. There is no good news in October’s report. Home prices across the country continue to fall.”
Meanwhile, a separate report showed that the Conference Board’s index of consumer confidence fell unexpectedly to 52.5 in December, after rising to a revised 55.3 in November. Analysts had expected the index to rise to 56.1 in December.
Commenting on the report, director of The Conference Board Consumer Research Center Lynn Franco said, “Consumers' assessment of the current state of the economy and labor market remains tepid, and their outlook remains cautious. Thus, all signs continue to suggest that the economic expansion will continue well into 2011, but that the pace of growth will remain moderate."
Elsewhere, the pound was down against the euro, with EUR/GBP gaining 0.08% to hit 0.8542.
Later in the day, the Bank of England was to publish a quarterly report on housing equity withdrawal, which is the change in the total value of new home-secured loans that are not used for home purchases or improvements.