Investing.com - The pound trimmed losses against the U.S. dollar on Tuesday, but remained under pressure as the downgrade of six European countries by Moody’s ratings agency weighed on investor confidence.
GBP/USD pulled back from 1.5688, the pair’s lowest since January 30, to hit 1.5736 during early European trade, still down 0.19%.
Cable was likely to find support at 1.5653, the low of January 30 and resistance at 1.5796, the high of January 31.
Moody’s ratings agency cut the debt ratings of six European countries earlier, including Italy, Spain and Portugal and said it may strip France and the U.K. of their top Aaa ratings, citing the euro zone’s debt crisis.
By doing so, Moody’s became the first agency to ever threaten the U.K.’s debt rating.
Commenting on the news, Chancellor of the Exchequer George Osborne said his fiscal consolidation program is the only thing stopping Britain from an immediate downgrade.
Earlier in the day, industry data showed that the U.K.’s house price balance fell 16% in January, in line with expectations, after a 16% decline the previous month.
The pound was also lower against the euro with EUR/GBP rising 0.08%, to hit 0.8372.
Later Tuesday, the U.K. was to publish reports on consumer price inflation and retail price inflation, followed by the Bank of England’s inflation letter.
In the U.S., official data was to be produced on retail sales, as well as reports on import prices and business inventories.
GBP/USD pulled back from 1.5688, the pair’s lowest since January 30, to hit 1.5736 during early European trade, still down 0.19%.
Cable was likely to find support at 1.5653, the low of January 30 and resistance at 1.5796, the high of January 31.
Moody’s ratings agency cut the debt ratings of six European countries earlier, including Italy, Spain and Portugal and said it may strip France and the U.K. of their top Aaa ratings, citing the euro zone’s debt crisis.
By doing so, Moody’s became the first agency to ever threaten the U.K.’s debt rating.
Commenting on the news, Chancellor of the Exchequer George Osborne said his fiscal consolidation program is the only thing stopping Britain from an immediate downgrade.
Earlier in the day, industry data showed that the U.K.’s house price balance fell 16% in January, in line with expectations, after a 16% decline the previous month.
The pound was also lower against the euro with EUR/GBP rising 0.08%, to hit 0.8372.
Later Tuesday, the U.K. was to publish reports on consumer price inflation and retail price inflation, followed by the Bank of England’s inflation letter.
In the U.S., official data was to be produced on retail sales, as well as reports on import prices and business inventories.