Investing.com - The pound was trading close to a four-and-a half month high against the U.S. dollar on Tuesday, following the release of soft U.S. housing data, while concerns over the possibility of a fresh round of easing by the Federal Reserve also weighed on the greenback.
GBP/USD hit 1.5998 during European afternoon trade, the pair’s highest since November 14; the pair subsequently consolidated at 1.5990, up 0.13%.
Cable was likely to find support at 1.5941, the session low and resistance at 1.6092, the high of November 14.
Sentiment on the greenback was hit after a report showed that the Standard & Poor’s/Case-Shiller house price index fell at an annualized rate of 3.8% in January from a year earlier, in line with expectations.
U.S. home prices in December were revised to a decline of 4.1% from a previously reported 4.0% drop.
Commenting on the report, David M. Blitzer, Chairman of the Index Committee at S&P’s said, “Despite some positive economic signs, home prices continued to drop.”
The dollar came under broad selling pressure on Monday after Federal Reserve Chairman Ben Bernanke said that further monetary accommodation is needed to bring about big gains in the U.S. jobs market, which he described as “far from normal,” despite a recent improvement.
In the U.K., a report by the Confederation of British Industry showed that retail sale volumes improved unexpectedly in March, as its index of annual sales growth rose to zero from minus 2 last month, against expectations for a reading of minus 4.
However, the report indicated that retailers expect conditions to worsen next month amid rising unemployment and higher energy prices.
The pound was also higher against the euro, with EUR/GBP shedding 0.23% to hit 0.8344.
Later in the day, the U.S. was to release a closely watched report on consumer confidence, while Fed Chairman Ben Bernanke was to speak at a public engagement.
GBP/USD hit 1.5998 during European afternoon trade, the pair’s highest since November 14; the pair subsequently consolidated at 1.5990, up 0.13%.
Cable was likely to find support at 1.5941, the session low and resistance at 1.6092, the high of November 14.
Sentiment on the greenback was hit after a report showed that the Standard & Poor’s/Case-Shiller house price index fell at an annualized rate of 3.8% in January from a year earlier, in line with expectations.
U.S. home prices in December were revised to a decline of 4.1% from a previously reported 4.0% drop.
Commenting on the report, David M. Blitzer, Chairman of the Index Committee at S&P’s said, “Despite some positive economic signs, home prices continued to drop.”
The dollar came under broad selling pressure on Monday after Federal Reserve Chairman Ben Bernanke said that further monetary accommodation is needed to bring about big gains in the U.S. jobs market, which he described as “far from normal,” despite a recent improvement.
In the U.K., a report by the Confederation of British Industry showed that retail sale volumes improved unexpectedly in March, as its index of annual sales growth rose to zero from minus 2 last month, against expectations for a reading of minus 4.
However, the report indicated that retailers expect conditions to worsen next month amid rising unemployment and higher energy prices.
The pound was also higher against the euro, with EUR/GBP shedding 0.23% to hit 0.8344.
Later in the day, the U.S. was to release a closely watched report on consumer confidence, while Fed Chairman Ben Bernanke was to speak at a public engagement.