Investing.com - The pound extended gains against the U.S. dollar on Tuesday, rising to a six-day high as positive German business climate data and a successful Spanish bond sale supported risk appetite.
GBP/USD hit 1.5650 during European afternoon trade, the pair’s highest since December 12; the pair subsequently consolidated at 1.5636, climbing 0.88%.
Cable was likely to find support at 1.5450, the low of December 13 and resistance at 1.5769, the high of December 8.
Sentiment was boosted after German research institute Ifo said its Business Climate Index rose to a seasonally adjusted 107.2 in December from 106.6 in November, confounding expectations for a decline to 106.0.
Elsewhere, Spain saw borrowing costs fall sharply at an auction of three and six-month government bonds.
But investors remained cautious after European Central Bank President Mario Draghi reiterated Monday that the bank’s bond purchasing program was temporary and warned the region’s economy was likely to enter a recession by early next year.
In the U.K., a report by the Confederation of British Industry said retail sales unexpectedly rose at the fastest rate in seven months in December, but warned that sales were expected to fall sharply again after Christmas.
Also Tuesday, a report by the Nationwide Building Society showed that its index of U.K. consumer confidence recovered from October’s record low last month but remained subdued amid concerns over unemployment and inflation levels.
Sterling was also higher against the euro with EUR/GBP retreating 0.34%, to hit 0.8358.
Later in the day, the U.S. was to publish data on building permits and housing starts.
GBP/USD hit 1.5650 during European afternoon trade, the pair’s highest since December 12; the pair subsequently consolidated at 1.5636, climbing 0.88%.
Cable was likely to find support at 1.5450, the low of December 13 and resistance at 1.5769, the high of December 8.
Sentiment was boosted after German research institute Ifo said its Business Climate Index rose to a seasonally adjusted 107.2 in December from 106.6 in November, confounding expectations for a decline to 106.0.
Elsewhere, Spain saw borrowing costs fall sharply at an auction of three and six-month government bonds.
But investors remained cautious after European Central Bank President Mario Draghi reiterated Monday that the bank’s bond purchasing program was temporary and warned the region’s economy was likely to enter a recession by early next year.
In the U.K., a report by the Confederation of British Industry said retail sales unexpectedly rose at the fastest rate in seven months in December, but warned that sales were expected to fall sharply again after Christmas.
Also Tuesday, a report by the Nationwide Building Society showed that its index of U.K. consumer confidence recovered from October’s record low last month but remained subdued amid concerns over unemployment and inflation levels.
Sterling was also higher against the euro with EUR/GBP retreating 0.34%, to hit 0.8358.
Later in the day, the U.S. was to publish data on building permits and housing starts.