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Forex - GBP/USD extends early losses, falls to fresh daily low

Published 08/23/2010, 11:08 AM
GBP/USD
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EUR/GBP
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Investing.com – The pound extended earlier losses against the U.S. dollar on Monday, falling to hit a fresh daily low, as risk sentiment remained weak in the wake of disappointing U.K. economic data.

GBP/USD hit 1.5500 during European afternoon trade, a fresh daily low; the pair subsequently consolidated at 1.5509, shedding 0.18%.

Cable was likely to find support at 1.5462, last Friday's low and resistance at 1.5702, the high of August 16.

Earlier in the day, data showed that a U.K. index of consumer finances stayed close to the lowest level in almost a year in August while a quarterly gauge of business confidence weakened.

Market research group Markit said in a report that its index of consumer finances fell to 37.9 in August after declining to 37.2 in July. Readings below 50 indicate deterioration.

Commenting on the report, Tim Moore, an economist at Markit said “A downbeat mood spans the household income spectrum, but remains most acute amongst the lowest earners.”

He added, “Household finances continue to suffer from a backdrop of squeezed disposable income, stubbornly high inflation and ongoing public sector spending cuts.”

Meanwhile, the pound was up against the euro, with EUR/GBP shedding 0.22% to hit 0.8163.

Also Monday, Kansas city Federal Reserve President Thomas Hoenig said that the biggest U.S. banks still have a government safety net, even after a congressional overhaul of banking regulation.

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