Investing.com - The pound firmed against the dollar on Tuesday after U.S. durables goods orders disappointed investors, though an upbeat report on consumer confidence cushioned the greenback's losses.
In U.S. trading on Tuesday, GBP/USD was up 0.26% at 1.6164, up from a session low of 1.6088 and off a high of 1.6182.
Cable was likely to find support at 1.5993, Thursday's low, and resistance at 1.6186, last Tuesday's high.
The dollar slid earlier after data revealed that that U.S. orders for long-lasting manufactured goods, anything from toasters to airplanes, fell unexpectedly for a second consecutive month in September.
The U.S. Commerce Department reported earlier that total durable goods orders, which include transportation items, decreased by 1.3% last month, disappointing expectations for a gain of 0.5%.
Orders for durable goods in August were revised to a decline of 18.3% from a previously reported drop of 18.4%.
Durable goods are typically bulky or heavy products designed to last at three years and include trains, planes and automobiles.
Core durable goods orders, which are stripped of volatile transportation items, eased down by 0.2% in September, defying forecasts for a 0.5% gain. Core durable goods orders rose by 0.7% in August.
Orders for core capital goods, a key barometer of private-sector business investment, fell by 1.7% last month, worse than expectations for a 0.6% increase and after rising 0.3% in August.
Shipments of core capital goods, a category used to calculate quarterly economic growth, declined 0.2% in September, disappointing forecasts for a 0.7% gain, after rising 0.1% in the preceding month.
While demand for computers and machinery declined, a sign many firms may be holding off on updating equipment, demand for cars and trucks remained firm, which brought the dollar up from earlier lows.
The Conference Board reported earlier that its consumer confidence index jumped to 94.5 this month from 89.0 in September, boosted by a more favorable assessment of the current job market and business conditions.
Economists had expected the index to tick down to 87.0 this month.
The report left many investors concluding that while demand for goods and services in the U.S. remains cautious, consumers still remain upbeat over the U.S. economy and will ramp up spending soon.
Elsewhere, sterling was up against the euro, with EUR/GBP up 0.09% at 0.7886, and up against the yen, with GBP/JPY down 0.41% at 174.53.
On Wednesday, the Federal Reserve is to announce its federal funds rate and publish its rate statement. Expect the dollar to move on any indication as to when interest rates may rise in the U.S.