Investing.com - The pound was higher against the U.S. dollar on Tuesday, as market sentiment slightly recovered in post-holiday trade but gains were capped by sustained concerns over the handling of the euro zone’s financial crisis.
GBP/USD hit 1.5594 during European morning trade, the pair’s highest since December 28; the pair subsequently consolidated at 1.5563, adding 0.32%.
Cable was likely to find support at 1.5467, the low of January 2 and resistance at 1.5628, the high of December 13.
The pound rose to a four-day high against the greenback after data on Sunday showed that Chinese manufacturing activity expanded in December after contracting the previous month.
But concerns over the euro zone’s financial woes remained in focus as investors eyed a series of key events this month, including German and French bond auctions later in the week.
On January 9, French President Nicolas Sarkozy and German Chancellor Angela Merkel are due to meet in order to discuss new rules to enforce budget discipline across the European Union.
Elsewhere, sterling was fractionally lower against the euro with EUR/GBP inching up 0.04%, to hit 0.8342.
Later in the day, the U.K. was to release data on manufacturing activity.
In the U.S., the Institute of Supply Management was to publish a report on manufacturing activity and the Federal Reserve was to publish the minutes of its December policy meeting.
GBP/USD hit 1.5594 during European morning trade, the pair’s highest since December 28; the pair subsequently consolidated at 1.5563, adding 0.32%.
Cable was likely to find support at 1.5467, the low of January 2 and resistance at 1.5628, the high of December 13.
The pound rose to a four-day high against the greenback after data on Sunday showed that Chinese manufacturing activity expanded in December after contracting the previous month.
But concerns over the euro zone’s financial woes remained in focus as investors eyed a series of key events this month, including German and French bond auctions later in the week.
On January 9, French President Nicolas Sarkozy and German Chancellor Angela Merkel are due to meet in order to discuss new rules to enforce budget discipline across the European Union.
Elsewhere, sterling was fractionally lower against the euro with EUR/GBP inching up 0.04%, to hit 0.8342.
Later in the day, the U.K. was to release data on manufacturing activity.
In the U.S., the Institute of Supply Management was to publish a report on manufacturing activity and the Federal Reserve was to publish the minutes of its December policy meeting.