Investing.com - The pound was little changed against the U.S. dollar on Tuesday, as investors awaited the outcome of talks in Brussels on a delayed bailout payment for Greece.
GBP/USD hit 1.5936 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.5917, inching up 0.06%.
Cable was likely to find support at 1.5834, the low of November 16 and resistance at 1.6018, the high of November 9.
Investors remained cautiously optimistic as euro zone finance ministers began talks in Brussels to discuss whether Greece can receive its next tranche of bailout funds.
Last week, European leaders granted Greece an additional two years to cut its budget deficit, which resulted in a disagreement with the International Monetary Fund, as it will add to the country’s debt burden.
Market sentiment was dented earlier after Moody’s downgraded France by one notch to Aa1 from Aaa with a negative outlook overnight, citing a deteriorating growth outlook for the euro zone’s second-largest economy.
The announcement did not come as a surprise to markets after Standard & Poor’s cut France’s rating in January.
Elsewhere in the euro zone, Spain successfully auctioned EUR5 billion of short term government bonds at lower borrowing costs, easing pressure on the country to request a bailout.
Sterling was slightly higher against the euro, with EUR/GBP slipping 0.11% to 0.8045.
In the U.S., official data showed that housing starts rose 3.6% in October to a seasonally adjusted annual rate of 0.894 million, the fastest rate of increase in four years.
The number of building permits issued last month fell 2.7% to a seasonally adjusted 0.866 million.
Later Tuesday, Federal Reserve Chairman Ben Bernanke was to speak at an event in New York.
GBP/USD hit 1.5936 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.5917, inching up 0.06%.
Cable was likely to find support at 1.5834, the low of November 16 and resistance at 1.6018, the high of November 9.
Investors remained cautiously optimistic as euro zone finance ministers began talks in Brussels to discuss whether Greece can receive its next tranche of bailout funds.
Last week, European leaders granted Greece an additional two years to cut its budget deficit, which resulted in a disagreement with the International Monetary Fund, as it will add to the country’s debt burden.
Market sentiment was dented earlier after Moody’s downgraded France by one notch to Aa1 from Aaa with a negative outlook overnight, citing a deteriorating growth outlook for the euro zone’s second-largest economy.
The announcement did not come as a surprise to markets after Standard & Poor’s cut France’s rating in January.
Elsewhere in the euro zone, Spain successfully auctioned EUR5 billion of short term government bonds at lower borrowing costs, easing pressure on the country to request a bailout.
Sterling was slightly higher against the euro, with EUR/GBP slipping 0.11% to 0.8045.
In the U.S., official data showed that housing starts rose 3.6% in October to a seasonally adjusted annual rate of 0.894 million, the fastest rate of increase in four years.
The number of building permits issued last month fell 2.7% to a seasonally adjusted 0.866 million.
Later Tuesday, Federal Reserve Chairman Ben Bernanke was to speak at an event in New York.