Investing.com - The pound extended losses against the U.S. dollar on Tuesday, falling to a fresh 11-day low as disappointing U.S. retail sales data and concerns over debt crisis in the euro zone weighed on demand for riskier assets.
GBP/USD hit 1.5674 during U.S. morning trade, the pair’s lowest since January 30; the pair subsequently consolidated at 1.5676, dropping 0.57%.
Cable was likely to find support at 1.5641, the low of January 27 and resistance at 1.5796, the high of January 31.
Sentiment weakened earlier after the U.S. Census Bureau said that retail sales rose less-than-expected by 0.4% in January, falling short of expectations for a 0.8% increase. December’s figure was revised down to a flat reading from a previously reported 0.1% increase.
The report also showed that core retail sales, which exclude automobile sales, rose by 0.7% last month, above expectations for a 0.6% gain.
The pound also came under pressure after Moody’s ratings agency cut the debt ratings of six European countries, including Italy, Spain and Portugal, and said it may strip France and the U.K. of their top Aaa ratings.
Meanwhile, markets were eyeing a meeting of euro zone finance ministers on Wednesday, as officials were pouring over Greece’s budget to decide whether the country has met conditions to receive a second bailout package.
Elsewhere, the pound was also lower against the euro with EUR/GBP adding 0.35%, to hit 0.8393.
Earlier in the day, Bank of England Governor Mervyn King said the bank's Monetary Policy Committee expects inflation to fall back to "around" its 2% target by the end of 2012.
The comments came after official data showed that consumer price inflation in the U.K. rose 3.6% in January, in line with expectations, while retail prices rose less-than-expected in January, advancing 3.9% after a 4.8% increase the previous month.
GBP/USD hit 1.5674 during U.S. morning trade, the pair’s lowest since January 30; the pair subsequently consolidated at 1.5676, dropping 0.57%.
Cable was likely to find support at 1.5641, the low of January 27 and resistance at 1.5796, the high of January 31.
Sentiment weakened earlier after the U.S. Census Bureau said that retail sales rose less-than-expected by 0.4% in January, falling short of expectations for a 0.8% increase. December’s figure was revised down to a flat reading from a previously reported 0.1% increase.
The report also showed that core retail sales, which exclude automobile sales, rose by 0.7% last month, above expectations for a 0.6% gain.
The pound also came under pressure after Moody’s ratings agency cut the debt ratings of six European countries, including Italy, Spain and Portugal, and said it may strip France and the U.K. of their top Aaa ratings.
Meanwhile, markets were eyeing a meeting of euro zone finance ministers on Wednesday, as officials were pouring over Greece’s budget to decide whether the country has met conditions to receive a second bailout package.
Elsewhere, the pound was also lower against the euro with EUR/GBP adding 0.35%, to hit 0.8393.
Earlier in the day, Bank of England Governor Mervyn King said the bank's Monetary Policy Committee expects inflation to fall back to "around" its 2% target by the end of 2012.
The comments came after official data showed that consumer price inflation in the U.K. rose 3.6% in January, in line with expectations, while retail prices rose less-than-expected in January, advancing 3.9% after a 4.8% increase the previous month.