Investing.com – The pound was down against the U.S. dollar on Tuesday, falling to a 4-day low as concerns over sovereign debt contagion spreading from Ireland to other indebted euro zone members dented risk appetite.
GBP/USD hit 1.5894 during late Asian trade, the pair’s lowest since November 17; the pair subsequently consolidated at 1.5932, shedding 0.16%.
Cable was likely to find support at 1.5721, the low of October 28 and resistance at 1.6083, Monday’s high.
On Monday, U.K. Chancellor Geroge Osborne defended his governments contribution to the Irish bailout, saying that Ireland was a "friend in need" and insisted it was "overwhelmingly in Britain's national interest" for a major trading partner with an "interconnected" banking sector to have a stable economy and banking system.
Britian’s contribution to the bailout package for Ireland is expected to reach about GBP7 billion.
British banks, including the Royal Bank of Scotland, have extensive liabilities in Ireland. However, Mr. Osborne insisted the offer to help was not based on fears about the health of U.K. banks.
Meanwhile, the pound was up against the euro, with EUR/GBP shedding 0.30% to hit 0.8514.
Later Tuesday, the U.S. was to publish revised figures on third quarter GDP as well as data on existing home sales and manufacturing. In addition, the Federal Reserve was to publish the minutes of its November monetary policy meeting while the U.K. was to publish industry data on mortgage approvals.
GBP/USD hit 1.5894 during late Asian trade, the pair’s lowest since November 17; the pair subsequently consolidated at 1.5932, shedding 0.16%.
Cable was likely to find support at 1.5721, the low of October 28 and resistance at 1.6083, Monday’s high.
On Monday, U.K. Chancellor Geroge Osborne defended his governments contribution to the Irish bailout, saying that Ireland was a "friend in need" and insisted it was "overwhelmingly in Britain's national interest" for a major trading partner with an "interconnected" banking sector to have a stable economy and banking system.
Britian’s contribution to the bailout package for Ireland is expected to reach about GBP7 billion.
British banks, including the Royal Bank of Scotland, have extensive liabilities in Ireland. However, Mr. Osborne insisted the offer to help was not based on fears about the health of U.K. banks.
Meanwhile, the pound was up against the euro, with EUR/GBP shedding 0.30% to hit 0.8514.
Later Tuesday, the U.S. was to publish revised figures on third quarter GDP as well as data on existing home sales and manufacturing. In addition, the Federal Reserve was to publish the minutes of its November monetary policy meeting while the U.K. was to publish industry data on mortgage approvals.