Investing.com - The pound rose to a fresh four-month high against the U.S. dollar on Tuesday, after positive U.K. trade data and as investors continued to hope for fresh easing measures by the Federal Reserve, ahead of the central bank’s monthly meeting this week.
GBP/USD hit 1.6037 during European afternoon trade, the pair’s highest since May 15; the pair subsequently consolidated at 1.6026, rising 0.23%.
Cable was likely to find support at 1.5958, Monday’s low and resistance at 1.6112, the high of May 15.
The pound found support after official data showed that the U.K. goods trade deficit narrowed unexpectedly in July, as exports to countries outside of the European Union jumped to a record high.
The Office for National Statistics said the goods trade deficit contracted to GBP7.14 billion in July, from GBP10.06 billion in June, compared to expectations for a deficit of GBP11.8 billion.
Meanwhile, markets continued to eye the outcome of the Fed’s policy meeting on Thursday, after disappointing U.S. employment data last week fueled fresh expectations for the central bank to add stimulus.
Meanwhile, Germany’s constitutional court confirmed that it will give its ruling on the euro zone’s bailout fund, the European Stability Mechanism on Wednesday, following earlier reports suggesting that the decision may be delayed.
Elsewhere, the pound was higher against the euro with EUR/GBP edging down 0.11%, to hit 0.7971.
Later in the day, the U.S. was to produce a report on trade balance.
GBP/USD hit 1.6037 during European afternoon trade, the pair’s highest since May 15; the pair subsequently consolidated at 1.6026, rising 0.23%.
Cable was likely to find support at 1.5958, Monday’s low and resistance at 1.6112, the high of May 15.
The pound found support after official data showed that the U.K. goods trade deficit narrowed unexpectedly in July, as exports to countries outside of the European Union jumped to a record high.
The Office for National Statistics said the goods trade deficit contracted to GBP7.14 billion in July, from GBP10.06 billion in June, compared to expectations for a deficit of GBP11.8 billion.
Meanwhile, markets continued to eye the outcome of the Fed’s policy meeting on Thursday, after disappointing U.S. employment data last week fueled fresh expectations for the central bank to add stimulus.
Meanwhile, Germany’s constitutional court confirmed that it will give its ruling on the euro zone’s bailout fund, the European Stability Mechanism on Wednesday, following earlier reports suggesting that the decision may be delayed.
Elsewhere, the pound was higher against the euro with EUR/GBP edging down 0.11%, to hit 0.7971.
Later in the day, the U.S. was to produce a report on trade balance.