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Forex - GBP/USD pares losses but remains sharply lower

Published 03/15/2011, 11:35 AM
GBP/USD
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GBP/JPY
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Investing.com – The pound modestly pared losses against the U.S. dollar on Tuesday, after Japanese government officials said radiation levels around the Fukushima Daiichi nuclear plant had fallen, following an earlier explosion and fire.

GBP/USD clawed back up from 1.5979, the pair’s lowest since Friday, to hit 1.6051 during early U.S. trade, tumbling 0.75%.

Cable was likely to find support at 1.5819, the low of January 31 and resistance at 1.6199, Monday’s high.

The announcement came after a fire was extinguished at the nuclear power plant. Earlier Tuesday, an explosion at the No. 2 reactor at the earthquake stricken plant, located 155 miles northeast of Tokyo, sent low levels of radiation floating towards the city.

Meanwhile, in the U.S., the New York Federal Reserve Bank reported that its manufacturing index topped expectations in March, climbing to 17.5 from 15.4 the previous month. Analysts had expected the index to rise to 16.5 this month.

A separate report showed that U.S. import prices rose more than expected in February as costs increased for energy, industrial supplies and food.

The pound was sharply lower against the yen, with GBP/JPY tumbling 1.70% to hit 129.75.

Later in the day, the U.S. Federal Reserve’s Federal Open Market Committee was to announce its federal funds rate.

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