Investing.com - The pound was little changed close to a two-month low against the U.S. dollar on Tuesday, as a combination of concerns over the outlook for the euro zone and the U.S. fiscal cliff supported safe haven demand.
GBP/USD hit 1.5916 during European afternoon trade, the session high; the pair subsequently consolidated at 1.5879, inching up 0.01%.
Cable was likely to find support at 1.5856, the session low and a two-month low and resistance at 1.6018, Thursday’s high.
Market sentiment found some support after German newspaper Bild reported earlier that Greece could receive EUR44 billion of financial aid in one payment, citing German government sources.
In addition, Greece sold EUR4.06 billion of short term government bonds, which should help Athens to repay EUR5 billion of debts maturing on Friday.
But investors remained concerned over a delayed bailout payment for Greece amid disagreements between officials from the International Monetary Fund and Europe on how best to reduce Greece’s debt to manageable levels.
A decision on unlocking a EUR31.5 billion bailout installment has been postponed until 20 November.
Also Tuesday, data showed that German economic sentiment dropped unexpectedly in November, adding to concerns over a slowdown in the euro zone’s largest economy.
The pound found some support after official data showed that U.K. consumer prices rose sharply in October, as a result of increases in the cost of food, transport and university fees.
The Office for National Statistics said the annual rate of consumer price inflation accelerated to 2.7% in October from 2.2% in September and a five month high.
The data sparked speculation that the Bank of England would have to raise its forecast for short-term inflation in its quarterly inflation report due on Wednesday.
Meanwhile, ongoing concerns over automatic tax hikes and spending cuts due to come into effect in the U.S. on January 1, which could threaten U.S. and global growth supported demand for the greenback.
Sterling was higher against the euro, with EUR/GBP slipping 0.17% to 0.7991.
Later Tuesday, the U.S. was to release official data on the federal budget balance.
GBP/USD hit 1.5916 during European afternoon trade, the session high; the pair subsequently consolidated at 1.5879, inching up 0.01%.
Cable was likely to find support at 1.5856, the session low and a two-month low and resistance at 1.6018, Thursday’s high.
Market sentiment found some support after German newspaper Bild reported earlier that Greece could receive EUR44 billion of financial aid in one payment, citing German government sources.
In addition, Greece sold EUR4.06 billion of short term government bonds, which should help Athens to repay EUR5 billion of debts maturing on Friday.
But investors remained concerned over a delayed bailout payment for Greece amid disagreements between officials from the International Monetary Fund and Europe on how best to reduce Greece’s debt to manageable levels.
A decision on unlocking a EUR31.5 billion bailout installment has been postponed until 20 November.
Also Tuesday, data showed that German economic sentiment dropped unexpectedly in November, adding to concerns over a slowdown in the euro zone’s largest economy.
The pound found some support after official data showed that U.K. consumer prices rose sharply in October, as a result of increases in the cost of food, transport and university fees.
The Office for National Statistics said the annual rate of consumer price inflation accelerated to 2.7% in October from 2.2% in September and a five month high.
The data sparked speculation that the Bank of England would have to raise its forecast for short-term inflation in its quarterly inflation report due on Wednesday.
Meanwhile, ongoing concerns over automatic tax hikes and spending cuts due to come into effect in the U.S. on January 1, which could threaten U.S. and global growth supported demand for the greenback.
Sterling was higher against the euro, with EUR/GBP slipping 0.17% to 0.7991.
Later Tuesday, the U.S. was to release official data on the federal budget balance.