Forex - GBP/USD holds onto gains after mixed U.S. economic data

Published 10/04/2010, 11:42 AM
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Investing.com – The pound held onto gains against the U.S. dollar on Monday, remaining close to the daily high, following the release of mixed U.S. data on home sales and new factory orders.

GBP/USD hit 1.5870 during European afternoon trade, the daily high; the pair subsequently consolidated at 1.5850, gaining 0.19%.

Cable was likely to find short-term support at 1.5668, last Thursday's low and resistance at 1.5922, last Thursday's high.

Earlier in the day, industry data showed that U.S. pending home sales rose more-than-expected in August.

The National Association of Realtors said its pending home sales index increased 4.3% in August, after rising by a revised 4.5% in July. Analysts had expected the pending home sales index to rise by 2.8% in August. Year-on-year, the National Association of Realtors pending home sales index was down 18.4%.

Commenting on the report NAR chief economist Lawrence Yu said, “Attractive affordability conditions from very low mortgage interest rates appear to be bringing buyers back to the market”.

Elsewhere, a seperate report showed that U.S. new factory goods orders declined more-than-expected in August.

Meanwhile, the pound was also up against the euro, with EUR/GBP tumbling 0.87% to hit 0.8639.

Also Monday, U.K. finance minister George Osborne said Britain was out of the "financial danger zone," but needed to stick to its plans to cut the budget deficit.

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