Investing.com - The pound edged lower against the U.S. dollar on Tuesday, as demand for the greenback found support after strong U.S. trade balance data, while investors remained cautious ahead of the minutes of the Federal Reserve's latest policy meeting.
GBP/USD hit 1.6375 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.6376, edging down 0.18%.
Cable was likely to find support at 1.6313, the low of December 25 and resistance at 1.6533, the high of December 30.
In a report, the U.S. Bureau of Economic Analysis said that the U.S. trade deficit narrowed to a four-year low of USD34.25 billion in November from a deficit of USD39.33 billion in October, whose figure was revised from a previously reported deficit of USD40.6 billion.
Analysts had expected the U.S. trade deficit to widen to USD40 billion in November. The data showed that U.S. exports totaled USD194.86 billion, while imports came in at USD229.11 billion.
Meanwhile, investors were eyeing Wednesday’s minutes of the Federal Reserve’s December meeting and Friday’s U.S. jobs report for December for further indications on the possible timing of reductions in Fed stimulus.
Sterling was little changed against the euro, with EUR/GBP inching down 0.01% to 0.8304.
In the euro zone, data showed that the bloc's annual rate of inflation slowed to 0.8% in December from 0.9% the previous month, nearing the four year low of 0.7% hit in October.
A separate report showed that the number of people out of work in Germany fell by 15,000 in December to 2.96 million, better than expectations for a decline of 1,000. The country’s unemployment rate remained steady at 6.9%.
Data also showed that German retail sales rose 1.5% in November, more than double expectations for an increase of 0.6%.
GBP/USD hit 1.6375 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.6376, edging down 0.18%.
Cable was likely to find support at 1.6313, the low of December 25 and resistance at 1.6533, the high of December 30.
In a report, the U.S. Bureau of Economic Analysis said that the U.S. trade deficit narrowed to a four-year low of USD34.25 billion in November from a deficit of USD39.33 billion in October, whose figure was revised from a previously reported deficit of USD40.6 billion.
Analysts had expected the U.S. trade deficit to widen to USD40 billion in November. The data showed that U.S. exports totaled USD194.86 billion, while imports came in at USD229.11 billion.
Meanwhile, investors were eyeing Wednesday’s minutes of the Federal Reserve’s December meeting and Friday’s U.S. jobs report for December for further indications on the possible timing of reductions in Fed stimulus.
Sterling was little changed against the euro, with EUR/GBP inching down 0.01% to 0.8304.
In the euro zone, data showed that the bloc's annual rate of inflation slowed to 0.8% in December from 0.9% the previous month, nearing the four year low of 0.7% hit in October.
A separate report showed that the number of people out of work in Germany fell by 15,000 in December to 2.96 million, better than expectations for a decline of 1,000. The country’s unemployment rate remained steady at 6.9%.
Data also showed that German retail sales rose 1.5% in November, more than double expectations for an increase of 0.6%.