Investing.com - The pound edged higher against the U.S. dollar on Tuesday, buoyed by speculation that China may implement measures to support growth, but gains were limited by concerns over elevated Spanish borrowing costs.
GBP/USD hit 1.5716 during European morning trade, the session high; the pair subsequently consolidated at 1.5696, easing up 0.10%.
Cable was likely to find support at 1.5629, Friday’s low and a two-and-a-half month low and resistance at 1.5770, the high of May 23.
Investor sentiment was supported by speculation that China may soon launch an economic stimulus program, to counter signs of a slowdown in growth in the world’s second largest economy.
But market participants remained cautious amid concerns over the situation in Spain, where rising bond yields, the growing costs of bank rescues and a recession hit economy fuelled fears that Madrid will be forced to seek an international bailout.
The yield on Spanish 10-year bonds eased back to 6.44% earlier, after hitting 6.50% on Monday, the 2012 high, after the government announced that it was to recapitalize one of the country’s largest commercial lenders Bankia.
The pound was little changed against the euro, with EUR/GBP inching up 0.03% to hit 0.7999.
Later in the day, the U.S. was to release reports on house price inflation and consumer confidence.
GBP/USD hit 1.5716 during European morning trade, the session high; the pair subsequently consolidated at 1.5696, easing up 0.10%.
Cable was likely to find support at 1.5629, Friday’s low and a two-and-a-half month low and resistance at 1.5770, the high of May 23.
Investor sentiment was supported by speculation that China may soon launch an economic stimulus program, to counter signs of a slowdown in growth in the world’s second largest economy.
But market participants remained cautious amid concerns over the situation in Spain, where rising bond yields, the growing costs of bank rescues and a recession hit economy fuelled fears that Madrid will be forced to seek an international bailout.
The yield on Spanish 10-year bonds eased back to 6.44% earlier, after hitting 6.50% on Monday, the 2012 high, after the government announced that it was to recapitalize one of the country’s largest commercial lenders Bankia.
The pound was little changed against the euro, with EUR/GBP inching up 0.03% to hit 0.7999.
Later in the day, the U.S. was to release reports on house price inflation and consumer confidence.