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Forex - GBP/USD extends losses as Fed, BoE statements in focus

Published 07/30/2013, 10:24 AM
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GBP/USD
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Investing.com - The pound extended losses against the U.S. dollar on Tuesday, as risk sentiment weakened ahead of highly anticipated policy statements by the Federal Reserve and the Bank of England later in the week.

GBP/USD hit 1.5252 during U.S. morning trade, the pair's lowest since July 19; the pair subsequently consolidated at 1.5250, retreating 0.58%.

Cable was likely to find support at 1.5196, the low of July 19 and resistance at 1.5413, Monday's high.

In the U.S., the Conference Board said its index of consumer confidence fell to 80.3 in July, from a reading of 82.1 the previous month, compared to expectations for a decline to 81.4.

The report came after data showed that the Standard & Poor's/Case-Shiller Composite-20 house price index rose to an annualized rate of 12.2% in May, from 12.1% the previous month, compared to expectations for an increase to 12.4%.

Markets were jittery ahead of the Fed's upcoming policy meeting, after recent U.S. economic reports fuelled uncertainty over whether the central bank will soon begin to scale back its bond-buying program.

Investors were also eyeing the BoE's policy statement on Thursday for indications on the future of the bank's monetary stimulus program, after official data last week showed that growth in the U.K. economy accelerated in line with expectations in the second quarter.

Sterling was lower against the euro with EUR/USD climbing 0.42%, to hit 0.8682.

The single currency found support after data earlier showed that the Gfk German consumer climate index rose more-than-expected in July, ticking up to 7.0 from a reading of 6.8 the previous month.

Analysts had expected the index to rise to 6.9 this month.

A separate report showed that consumer price inflation in Germany rose 0.5% in July, more than the expected 0.3% uptick, after a 0.1% rise the previous month.


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