Investing.com – The pound extended gains against the U.S. dollar on Tuesday, tracking gains in global stock markets and the euro, on the back of hopes for resolute measures by European leaders to tackle the debt crisis in the euro zone.
GBP/USD hit 1.5687 during early U.S. trade, the pair’s highest since September 21; the pair subsequently consolidated at 1.5673, gaining 0.68%.
Cable was likely to find support at 1.5431, Monday’s low and resistance at 1.5746, the high of September 21.
Market sentiment was boosted by speculation that European officials are examining ways to enlarge the capacity of the euro zone’s bailout fund, the European Financial Stability Facility.
German Chancellor Angela Merkel urged lawmakers to back an expansion of the EFSF earlier and stressed the importance of approving changes to the facility’s powers ahead of a vote on the issue later in the week.
Earlier in the day, sterling followed the euro lower after Spain's economy minister said plans to expand the fund to EUR2 trillion from its existing EUR4 billion were not on the table.
Elsewhere Tuesday, a report by the Confederation of British Industry showed that retail sales in the U.K. unexpectedly declined in September, falling to the lowest level since May 2010.
The report, coming after a recent string of soft data, underlined expectations that the Bank of England may soon inject more stimulus into the economy to shore up growth.
Elsewhere, the pound was fractionally higher against the euro, with EUR/GBP slipping 0.08% to hit 0.8686.
Also Tuesday, a U.S. report showed that the S&P/Case-Shiller home price index fell less-than-expected in July, dropping 4.1% following a 4.5% decline the previous month.
Analysts had expected home prices to drop by 4.4% in July.
GBP/USD hit 1.5687 during early U.S. trade, the pair’s highest since September 21; the pair subsequently consolidated at 1.5673, gaining 0.68%.
Cable was likely to find support at 1.5431, Monday’s low and resistance at 1.5746, the high of September 21.
Market sentiment was boosted by speculation that European officials are examining ways to enlarge the capacity of the euro zone’s bailout fund, the European Financial Stability Facility.
German Chancellor Angela Merkel urged lawmakers to back an expansion of the EFSF earlier and stressed the importance of approving changes to the facility’s powers ahead of a vote on the issue later in the week.
Earlier in the day, sterling followed the euro lower after Spain's economy minister said plans to expand the fund to EUR2 trillion from its existing EUR4 billion were not on the table.
Elsewhere Tuesday, a report by the Confederation of British Industry showed that retail sales in the U.K. unexpectedly declined in September, falling to the lowest level since May 2010.
The report, coming after a recent string of soft data, underlined expectations that the Bank of England may soon inject more stimulus into the economy to shore up growth.
Elsewhere, the pound was fractionally higher against the euro, with EUR/GBP slipping 0.08% to hit 0.8686.
Also Tuesday, a U.S. report showed that the S&P/Case-Shiller home price index fell less-than-expected in July, dropping 4.1% following a 4.5% decline the previous month.
Analysts had expected home prices to drop by 4.4% in July.