Investing.com - The pound erased gains against the U.S. dollar on Tuesday, after the release of positive U.S. data on retail sales further dampened expectations for a fresh round of easing by the Federal Reserve ahead of the bank’s rate statement later in the day.
GBP/USD pulled away from 1.5673, the session high, to hit 1.5629 during European afternoon trade, slipping 0.10%.
Cable was likely to find support at 1.5602, Monday’s low and a six-week low and resistance at 1.5694, Monday’s high.
Official data showed that U.S. retail sales rose to the highest level in five months in February, increasing by a seasonally adjusted 1.1%, in line with expectations.
January’s figure was revised up to a 0.6% increase from a previously reported gain of 0.4%.
Core retail sales, which exclude automobile sales, rose by 0.9% last month, above expectations for a 0.8% gain.
The data diminished expectations for a third round of monetary easing by the Fed, after data on Friday showed that the U.S. economy added more jobs than forecast in February.
The pound remained supported after official data earlier showed that total U.K. exports to non-EU countries rose to a record high in January, adding to hopes that the economy is recovering.
The Office for National Statistics said the goods trade deficit expanded to GBP7.53 billion in January, slightly less than forecasts for GBP7.88 billion and up from GBP7.18 billion the previous month, which had been the lowest since December 2009.
Meanwhile, concerns that the debt crisis in the euro zone could flare up again lingered as Spain faced calls from European leaders to make deeper budget cuts, after the country’s prime minister raised the deficit target earlier this month.
The pound was higher against the euro, with EUR/GBP falling 0.61% to hit 0.8357.
Also Tuesday, euro zone finance ministers formally approved a second bailout for Greece, after the country concluded a debt swap with its private creditors last week.
GBP/USD pulled away from 1.5673, the session high, to hit 1.5629 during European afternoon trade, slipping 0.10%.
Cable was likely to find support at 1.5602, Monday’s low and a six-week low and resistance at 1.5694, Monday’s high.
Official data showed that U.S. retail sales rose to the highest level in five months in February, increasing by a seasonally adjusted 1.1%, in line with expectations.
January’s figure was revised up to a 0.6% increase from a previously reported gain of 0.4%.
Core retail sales, which exclude automobile sales, rose by 0.9% last month, above expectations for a 0.8% gain.
The data diminished expectations for a third round of monetary easing by the Fed, after data on Friday showed that the U.S. economy added more jobs than forecast in February.
The pound remained supported after official data earlier showed that total U.K. exports to non-EU countries rose to a record high in January, adding to hopes that the economy is recovering.
The Office for National Statistics said the goods trade deficit expanded to GBP7.53 billion in January, slightly less than forecasts for GBP7.88 billion and up from GBP7.18 billion the previous month, which had been the lowest since December 2009.
Meanwhile, concerns that the debt crisis in the euro zone could flare up again lingered as Spain faced calls from European leaders to make deeper budget cuts, after the country’s prime minister raised the deficit target earlier this month.
The pound was higher against the euro, with EUR/GBP falling 0.61% to hit 0.8357.
Also Tuesday, euro zone finance ministers formally approved a second bailout for Greece, after the country concluded a debt swap with its private creditors last week.