Investing.com - The pound was lower against the U.S. dollar on Tuesday, as sustained concerns over the handling of the debt crisis in the euro zone and global growth worries weighed on demand for riskier assets, while investors eyed the release of key U.K. data later in the day.
GBP/USD hit 1.5497 during European morning trade, the daily low; the pair subsequently consolidated at 1.5504, falling 0.14%.
Cable was likely to find support at 1.5428, the low of June 7 and resistance at 1.5562, the high of June 14.
Market sentiment remained under pressure after a meeting of euro zone finance ministers on Monday offered few signs of progress in tackling the region’s debt crisis.
Euro zone ministers agreed to push Spain’s deadline to reach its deficit reduction targets back to 2014 in exchange for further budget savings and set the parameters of an aid package for Madrid's ailing banks.
They made no apparent progress, however, on activating the bloc's rescue funds to intervene in bond markets and bring down Spain and Italy’s spiraling borrowing costs.
Spain’s 10-year government bonds were hovering at 7.03% earlier Tuesday, while Italy’s 10-year bonds were at 6.10%, both above the 6% threshold which is widely seen as unsustainable.
Meanwhile, data showed that China's imports in June grew at half the expected pace, underscoring that the country’s economy and domestic demand are cooling quickly, even though export growth was slightly better than expected.
In the U.K., industry data showed earlier that house price balance fell more-than-expected in June, dropping 22% after a 17% decline the previous month. Analysts had expected house price balance to fall 15% in June.
The report came after data showed that a retail sales monitor for the U.K. rose 1.4% in June after a 1.3% increase the previous month.
Elsewhere, sterling was steady against the euro with EUR/GBP inching up 0.06%, to hit 0.7925.
Also Tuesday, official data showed that French industrial production tumbled 1.9% in May, far more than expectations for a 0.9% fall and following a 1.4% rise the previous month.
Euro zone finance ministers were to hold a second day of talks in Brussels throughout the day.
GBP/USD hit 1.5497 during European morning trade, the daily low; the pair subsequently consolidated at 1.5504, falling 0.14%.
Cable was likely to find support at 1.5428, the low of June 7 and resistance at 1.5562, the high of June 14.
Market sentiment remained under pressure after a meeting of euro zone finance ministers on Monday offered few signs of progress in tackling the region’s debt crisis.
Euro zone ministers agreed to push Spain’s deadline to reach its deficit reduction targets back to 2014 in exchange for further budget savings and set the parameters of an aid package for Madrid's ailing banks.
They made no apparent progress, however, on activating the bloc's rescue funds to intervene in bond markets and bring down Spain and Italy’s spiraling borrowing costs.
Spain’s 10-year government bonds were hovering at 7.03% earlier Tuesday, while Italy’s 10-year bonds were at 6.10%, both above the 6% threshold which is widely seen as unsustainable.
Meanwhile, data showed that China's imports in June grew at half the expected pace, underscoring that the country’s economy and domestic demand are cooling quickly, even though export growth was slightly better than expected.
In the U.K., industry data showed earlier that house price balance fell more-than-expected in June, dropping 22% after a 17% decline the previous month. Analysts had expected house price balance to fall 15% in June.
The report came after data showed that a retail sales monitor for the U.K. rose 1.4% in June after a 1.3% increase the previous month.
Elsewhere, sterling was steady against the euro with EUR/GBP inching up 0.06%, to hit 0.7925.
Also Tuesday, official data showed that French industrial production tumbled 1.9% in May, far more than expectations for a 0.9% fall and following a 1.4% rise the previous month.
Euro zone finance ministers were to hold a second day of talks in Brussels throughout the day.