Investing.com - The pound was steady close to a five-month high against the U.S. dollar on Tuesday, after the release of mixed U.S. economic data as worries over the handling of the debt crisis in the euro zone continued to weigh on market sentiment.
GBP/USD hit 1.6164 during U.S. morning trade, the pair’s highest since October 31; the pair subsequently consolidated at 1.6137, inching up 0.03%.
Cable was likely to find support at 1.6075, Monday’s low and resistance at 1.6252, the high of September 2.
The Conference Board said that its index of U.S. consumer confidence dipped to 69.2 in April from a reading of 69.5 in March, whose figure was revised down from 70.2. Analysts had expected the index to ease up to 69.7 in April.
A separate report showed that new home sales in the U.S. fell by 7.1% to a seasonally adjusted 328,000 units in March, compared to expectations for a decline to 320,000. New home sales for February were revised up to 353,000 units from a previously reported 313,000 units.
The data came after a report showing that the S&P/Case-Shiller home price index fell more-than-expected in February, declining for the 20th consecutive month as U.S. home prices fell to the lowest level since 2002.
Meanwhile, investors remained cautious after an auction of Spanish short term government debt saw the country’s borrowing costs almost double, while Italy’s borrowing costs rose to the highest level since January after an auction of government bills.
Market sentiment was supported however after The Netherlands successfully auctioned EUR1.99 billion of two and 25-year government bonds.
The results of the auction were closely watched amid fears that the country could lose its triple-A credit rating following the collapse of the government on Monday after talks on the 2013 austerity budget failed.
Sterling pulled back from a 20-month high against the euro with EUR/GBP rising 0.32%, to hit 0.8182.
Earlier in the day, official data showed that public sector borrowing in the U.K. rose more-than-expected last month, while the country’s debt-to-GDP ratio rose to a record high 8.3%.
The Office for National Statistics said public borrowing rose to GBP18.17 billion in March, from GBP17.95 billion a year ago, higher than expectations for an increase to GBP14.4 billion.
GBP/USD hit 1.6164 during U.S. morning trade, the pair’s highest since October 31; the pair subsequently consolidated at 1.6137, inching up 0.03%.
Cable was likely to find support at 1.6075, Monday’s low and resistance at 1.6252, the high of September 2.
The Conference Board said that its index of U.S. consumer confidence dipped to 69.2 in April from a reading of 69.5 in March, whose figure was revised down from 70.2. Analysts had expected the index to ease up to 69.7 in April.
A separate report showed that new home sales in the U.S. fell by 7.1% to a seasonally adjusted 328,000 units in March, compared to expectations for a decline to 320,000. New home sales for February were revised up to 353,000 units from a previously reported 313,000 units.
The data came after a report showing that the S&P/Case-Shiller home price index fell more-than-expected in February, declining for the 20th consecutive month as U.S. home prices fell to the lowest level since 2002.
Meanwhile, investors remained cautious after an auction of Spanish short term government debt saw the country’s borrowing costs almost double, while Italy’s borrowing costs rose to the highest level since January after an auction of government bills.
Market sentiment was supported however after The Netherlands successfully auctioned EUR1.99 billion of two and 25-year government bonds.
The results of the auction were closely watched amid fears that the country could lose its triple-A credit rating following the collapse of the government on Monday after talks on the 2013 austerity budget failed.
Sterling pulled back from a 20-month high against the euro with EUR/GBP rising 0.32%, to hit 0.8182.
Earlier in the day, official data showed that public sector borrowing in the U.K. rose more-than-expected last month, while the country’s debt-to-GDP ratio rose to a record high 8.3%.
The Office for National Statistics said public borrowing rose to GBP18.17 billion in March, from GBP17.95 billion a year ago, higher than expectations for an increase to GBP14.4 billion.