Investing.com – The pound fell to a three-day low against the U.S. dollar on Tuesday, tracking the euro’s losses as renewed concerns over the debt crisis in the euro zone weighed on demand for higher yielding assets.
GBP/USD hit 1.5963 during European morning trade, the pair’s lowest since October 27; the pair subsequently consolidated at 1.5977, shedding 0.67%.
Cable was likely to find support at 1.5890, the low of October 26 and resistance at 1.6092, the days high.
Sentiment on the single currency was hit by uncertainty over how a package of measures to contain the debt crisis in the euro zone, agreed on at last Thursday’s European Union summit, could be implemented.
Reports that Greek Prime Minister George Papandreou has called a referendum on the new aid package, as well surging Italian borrowing costs also weighed.
Risk appetite was also hit by data showing that Chinese manufacturing activity dropped to its lowest level since February 2009 in October, fuelling concerns over a slowdown in the world’s second-largest economy.
Later in the day, the U.K. was to release official data on third quarter economic growth, as concerns over weakening economic conditions mounted after the Bank of England implemented fresh measures to shore up growth in October.
Meanwhile, the pound was higher against the euro, with EUR/GBP shedding 0.42% to hit 0.8576.
Also Tuesday, the Institute of Supply Management was to produce a report on U.S. manufacturing activity.
GBP/USD hit 1.5963 during European morning trade, the pair’s lowest since October 27; the pair subsequently consolidated at 1.5977, shedding 0.67%.
Cable was likely to find support at 1.5890, the low of October 26 and resistance at 1.6092, the days high.
Sentiment on the single currency was hit by uncertainty over how a package of measures to contain the debt crisis in the euro zone, agreed on at last Thursday’s European Union summit, could be implemented.
Reports that Greek Prime Minister George Papandreou has called a referendum on the new aid package, as well surging Italian borrowing costs also weighed.
Risk appetite was also hit by data showing that Chinese manufacturing activity dropped to its lowest level since February 2009 in October, fuelling concerns over a slowdown in the world’s second-largest economy.
Later in the day, the U.K. was to release official data on third quarter economic growth, as concerns over weakening economic conditions mounted after the Bank of England implemented fresh measures to shore up growth in October.
Meanwhile, the pound was higher against the euro, with EUR/GBP shedding 0.42% to hit 0.8576.
Also Tuesday, the Institute of Supply Management was to produce a report on U.S. manufacturing activity.