Investing.com - The pound edged lower against the U.S. dollar on Tuesday, as investors remained focused on developments in the euro zone, shrugging off strong U.K. manufacturing and trade data published earlier in the day.
GBP/USD hit 1.5494 during U.S. morning trades, the daily low; the pair subsequently consolidated at 1.5511, edging down 0.10%.
Cable was likely to find short-term support at 1.5452, the low of June 12 and resistance at 1.5597, the high of June 13.
Investors turned to a meeting of European Union finance ministers later Tuesday, a day after euro zone officials agreed to make EUR30 billion in aid available to assist Spain’s struggling banking sector by the end of the month, in addition to extending Spain’s deficit target deadline by one year to 2014.
They made no apparent progress, however, on activating the bloc's rescue funds to intervene in bond markets and bring down Spain and Italy’s spiraling borrowing costs.
Spain’s 10-year government bonds eased to 6.74% earlier, moving below the critical 7% threshold which is widely seen as unsustainable in the long term.
Markets were also jittery as Germany's top court was due to decide whether the EU's permanent bailout fund is compatible with national law, potentially leading to deeper fiscal integration within the region.
Sterling found support earlier, after the U.K. Office for National Statistics said that manufacturing production rose by 1.2% in May, blowing past expectations for a more modest 0.1% gain, after falling by 0.8% in April.
The report also showed that industrial production rose 1.0% in May, defying expectations for a 0.2% drop, after declining a revised rate of 0.4% in April.
A separate report showed that the U.K.’s goods trade deficit narrowed more-than-expected in May, as exports picked up from the previous month.
The ONS said the country's goods trade deficit narrowed to a seasonally adjusted GBP8.4 billion in May from a deficit of GBP9.7 billion in April, as exports jumped 6.6%.
Elsewhere, the pound was trading close to a fresh one-and-a-half year high against the euro with EUR/GBP shedding 0.32%, to hit 0.7904.
Also Tuesday, official data showed that French industrial production tumbled 1.9% in May, far more than expectations for a 0.9% fall and following a 1.4% rise the previous month.
GBP/USD hit 1.5494 during U.S. morning trades, the daily low; the pair subsequently consolidated at 1.5511, edging down 0.10%.
Cable was likely to find short-term support at 1.5452, the low of June 12 and resistance at 1.5597, the high of June 13.
Investors turned to a meeting of European Union finance ministers later Tuesday, a day after euro zone officials agreed to make EUR30 billion in aid available to assist Spain’s struggling banking sector by the end of the month, in addition to extending Spain’s deficit target deadline by one year to 2014.
They made no apparent progress, however, on activating the bloc's rescue funds to intervene in bond markets and bring down Spain and Italy’s spiraling borrowing costs.
Spain’s 10-year government bonds eased to 6.74% earlier, moving below the critical 7% threshold which is widely seen as unsustainable in the long term.
Markets were also jittery as Germany's top court was due to decide whether the EU's permanent bailout fund is compatible with national law, potentially leading to deeper fiscal integration within the region.
Sterling found support earlier, after the U.K. Office for National Statistics said that manufacturing production rose by 1.2% in May, blowing past expectations for a more modest 0.1% gain, after falling by 0.8% in April.
The report also showed that industrial production rose 1.0% in May, defying expectations for a 0.2% drop, after declining a revised rate of 0.4% in April.
A separate report showed that the U.K.’s goods trade deficit narrowed more-than-expected in May, as exports picked up from the previous month.
The ONS said the country's goods trade deficit narrowed to a seasonally adjusted GBP8.4 billion in May from a deficit of GBP9.7 billion in April, as exports jumped 6.6%.
Elsewhere, the pound was trading close to a fresh one-and-a-half year high against the euro with EUR/GBP shedding 0.32%, to hit 0.7904.
Also Tuesday, official data showed that French industrial production tumbled 1.9% in May, far more than expectations for a 0.9% fall and following a 1.4% rise the previous month.