Investing.com - The pound remained lower against the U.S. dollar on Tuesday, after the release of disappointing U.S. consumer confidence data and as uncertainty over the future of the Federal Reserve's stimulus program continued to weigh.
GBP/USD hit 1.5956 during U.S. morning trade, the pair's lowest since September 18; the pair subsequently consolidated at 1.5982, shedding 0.38%.
Cable was likely to find support at 1.5893, the low of September 18 and resistance at 1.6072, Monday's high.
Data showed that the Conference Board’s index of U.S. consumer confidence fell to 79.7 on September from 81.8 in August. Economists had forecast a decline to 79.9.
The report came as concerns over the outlook for the U.S. recovery mounted after New York Federal Reserve President William Dudley on Monday defended the central bank’s decision to keep its stimulus program unchanged last week.
Dudley said that adjustments to the Fed’s USD85 billion-a-month asset purchase program "need to be anchored in an assessment of how the economy is actually performing”.
The Fed said last week that it wanted to see more evidence of a sustained economic recovery before it adjusted the scale of its bond buying program. The decision surprised markets, which had been expecting a modest reduction to the scale of the bank’s bond buying program.
Sterling was also lower against the euro with EUR/GBP adding 0.27%, to hit 0.8432.
In the euro zone, data showed that German business confidence improved in September, but to a lower than expected level.
The German Ifo business climate index ticked up to 107.7 from 107.6 in August, the highest level since March 2012 but still below expectations for a reading of 108.2.
The single currency remained under pressure after European Central Bank President Mario Draghi said Monday the bank is ready to inject a third round of liquidity into the region’s banks if needed, in order to safeguard the bloc’s recovery.
GBP/USD hit 1.5956 during U.S. morning trade, the pair's lowest since September 18; the pair subsequently consolidated at 1.5982, shedding 0.38%.
Cable was likely to find support at 1.5893, the low of September 18 and resistance at 1.6072, Monday's high.
Data showed that the Conference Board’s index of U.S. consumer confidence fell to 79.7 on September from 81.8 in August. Economists had forecast a decline to 79.9.
The report came as concerns over the outlook for the U.S. recovery mounted after New York Federal Reserve President William Dudley on Monday defended the central bank’s decision to keep its stimulus program unchanged last week.
Dudley said that adjustments to the Fed’s USD85 billion-a-month asset purchase program "need to be anchored in an assessment of how the economy is actually performing”.
The Fed said last week that it wanted to see more evidence of a sustained economic recovery before it adjusted the scale of its bond buying program. The decision surprised markets, which had been expecting a modest reduction to the scale of the bank’s bond buying program.
Sterling was also lower against the euro with EUR/GBP adding 0.27%, to hit 0.8432.
In the euro zone, data showed that German business confidence improved in September, but to a lower than expected level.
The German Ifo business climate index ticked up to 107.7 from 107.6 in August, the highest level since March 2012 but still below expectations for a reading of 108.2.
The single currency remained under pressure after European Central Bank President Mario Draghi said Monday the bank is ready to inject a third round of liquidity into the region’s banks if needed, in order to safeguard the bloc’s recovery.