Forex - GBP/USD hits daily high as weak U.S. sentiment data weighs

Published 09/29/2010, 02:51 AM
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Investing.com – The pound was up against the U.S. dollar on Wednesday, rising to a fresh daily high, as Tuesday's worse-than-expected data on U.S. consumer confidence continued to weigh on the dollar.

GBP/USD hit 1.5860 during late Asian trade, a daily high; the pair subsequently consolidated at 1.5858, gaining 0.37%.

Cable was likely to find support at 1.5718, Tuesday's low and resistance at 1.5995, the high of August 9.

On Tuesday, data showed that U.S. consumer confidence fell significantly more-than-expected in September as consumers saw no improvement in the labor market.

The Conference Board, a private research group, said its index of U.S. consumer sentiment fell to 48.5 after rising to a revised 53.2 in August. Analysts had expected the index to decline to 52.9 in September.

Commenting on the report, Lynn Franco, Director of the Conference Board Consumer Research Center said, "Overall, consumers’ confidence in the state of the economy remains quite grim".

The pound was also up against the euro, with EUR/GBP shedding 0.24% to hit 0.8576.

Also Tuesday, Bank of England Monetary Policy Committee member Adam Posen said Britain needed aggressive economic stimulus to stop it falling into the same kind of slump Japan did in the 1990's, causing the pound to drop sharply.

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