Investing.com – The pound was down against the U.S. dollar on Tuesday, amid increased risk aversion, as renewed concerns rose over the U.K. economic recovery.
GBP/USD hit 1.5354 during European morning trade, a daily low; the pair subsequently consolidated at 1.5364, shedding 0.19%.
Cable was likely to find support at 1.5326, the low of August 31, and resistance at 1.5488, Monday’s high.
Late Monday, a report from the British Retail Consortium showed that its year-on-year retail sales monitor rose 1.0% in August, compared to retail sales in August 2009.
Commenting on the report, Director General at BRC Stephen Robertson said, “Sales are still growing but anxiety about job cuts and tax rises is putting people off making major spending commitments. Renewed weakness in the housing market particularly affected the furniture and flooring sector.”
He added, “With the Government about to detail its cuts and a VAT rise in prospect, retailers will be hoping consumer confidence doesn’t slip over the next few months.”
Meanwhile, the pound was up against the euro, with EUR/GBP shedding 0.73% to hit 0.8303.
Later in the day, the U.K. was expected to release industry data on an index that measures the change in the price of goods purchased at retail stores in the U.K.
GBP/USD hit 1.5354 during European morning trade, a daily low; the pair subsequently consolidated at 1.5364, shedding 0.19%.
Cable was likely to find support at 1.5326, the low of August 31, and resistance at 1.5488, Monday’s high.
Late Monday, a report from the British Retail Consortium showed that its year-on-year retail sales monitor rose 1.0% in August, compared to retail sales in August 2009.
Commenting on the report, Director General at BRC Stephen Robertson said, “Sales are still growing but anxiety about job cuts and tax rises is putting people off making major spending commitments. Renewed weakness in the housing market particularly affected the furniture and flooring sector.”
He added, “With the Government about to detail its cuts and a VAT rise in prospect, retailers will be hoping consumer confidence doesn’t slip over the next few months.”
Meanwhile, the pound was up against the euro, with EUR/GBP shedding 0.73% to hit 0.8303.
Later in the day, the U.K. was expected to release industry data on an index that measures the change in the price of goods purchased at retail stores in the U.K.