Investing.com - The pound fell to session lows against the dollar on Tuesday as concerns that the U.S. is moving closer to taking military action against Syria bolstered safe haven demand.
GBP/USD hit 1.5507 during European morning trade, the lowest since August 15; the pair subsequently consolidated at 1.5508, shedding 0.42%.
Cable was likely to find support at 1.5475 and resistance at 1.5591, the session high.
Demand for the dollar was boosted after U.S. Secretary of State John Kerry said President Obama will hold Syria’s government accountable for using chemical weapons.
Meanwhile, concerns over the U.S. economic recovery lingered after data on Monday showed that U.S. durable goods orders fell more-than-expected last month.
The Commerce Department said U.S. durable goods orders dropped 7.3% in July, worse than expectations for a 4% decline. It was the largest decline since August 2012.
The data came after a report on Friday showed that U.S. new home sales fell by a larger-than-forecast 13.4% in July, the largest decline in more than three years.
The weak data raised doubts over whether the Federal Reserve will start to reduce its USD85 billion-a-month asset purchase program in September.
Elsewhere, sterling was lower against the euro, with EUR/GBP easing up 0.12% to 0.8593.
In the euro zone, data on Tuesday showed that the closely watched Ifo index of German business climate rose to a 16-month high of 107.5 in August from 106.2 in July. Economists had expected the index to tick up to 107.0.
The Current Assessment Index rose to 112.0 in August from 110.1 in July, compared to expectations for an increase to 110.9.
GBP/USD hit 1.5507 during European morning trade, the lowest since August 15; the pair subsequently consolidated at 1.5508, shedding 0.42%.
Cable was likely to find support at 1.5475 and resistance at 1.5591, the session high.
Demand for the dollar was boosted after U.S. Secretary of State John Kerry said President Obama will hold Syria’s government accountable for using chemical weapons.
Meanwhile, concerns over the U.S. economic recovery lingered after data on Monday showed that U.S. durable goods orders fell more-than-expected last month.
The Commerce Department said U.S. durable goods orders dropped 7.3% in July, worse than expectations for a 4% decline. It was the largest decline since August 2012.
The data came after a report on Friday showed that U.S. new home sales fell by a larger-than-forecast 13.4% in July, the largest decline in more than three years.
The weak data raised doubts over whether the Federal Reserve will start to reduce its USD85 billion-a-month asset purchase program in September.
Elsewhere, sterling was lower against the euro, with EUR/GBP easing up 0.12% to 0.8593.
In the euro zone, data on Tuesday showed that the closely watched Ifo index of German business climate rose to a 16-month high of 107.5 in August from 106.2 in July. Economists had expected the index to tick up to 107.0.
The Current Assessment Index rose to 112.0 in August from 110.1 in July, compared to expectations for an increase to 110.9.