Investing.com - The pound remained lower against the U.S. dollar on Tuesday, after weak U.S. manufacturing data as hopes that a deal to raise the U.S. federal borrowing limit could be reached in time to avert a debt default continued to support demand for the greenback.
GBP/USD hit 1.5916 during U.S. morning trade, the pair's lowest since October 10; the pair subsequently consolidated at 1.5946, slipping 0.22%.
Cable was likely to find support at 1.5884, the low of September 17 and resistance at 1.6009, the session high.
In a report, the Federal Reserve Bank of New York said that its general business conditions index fell to 1.52 in October, the lowest level in five months, from a reading of 6.29 in September.
Analysts had expected the index to rise to 7.0 this month.
The greenback strengthened after Senate Majority Leader Harry Reid said Monday that “tremendous progress” had been made towards a deal to raise the U.S. debt ceiling and reopen the federal government, fuelling hopes that a compromise can be reached.
If an agreement to raise the government borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
However, any potential deal will still have to be approved by the House of Representatives, where Speaker John Boehner would have to decide whether to allow a vote or demand federal spending cuts.
The pound found some support earler, after data showed that the rate of consumer price inflation in the U.K. accelerated 2.7% on a year-over-year basis last month, unchanged from August.
Analysts had expected consumer price inflation to tick down to 2.6%.
Month-over-month, consumer price inflation rose by 0.4% in September, above expectations for a 0.3% increase.
Sterling was higher against the euro with EUR/GBP shedding 0.31%, to hit 0.8457.
Also Tuesday, data showed that German economic sentiment improved more-than-expected in October, rising to the highest level since April 2010.
The ZEW Centre for Economic Research said that its index of German economic sentiment rose by 3.2 points to hit 52.8 in October from September’s reading of 49.6. Analysts had expected an unchanged reading.
GBP/USD hit 1.5916 during U.S. morning trade, the pair's lowest since October 10; the pair subsequently consolidated at 1.5946, slipping 0.22%.
Cable was likely to find support at 1.5884, the low of September 17 and resistance at 1.6009, the session high.
In a report, the Federal Reserve Bank of New York said that its general business conditions index fell to 1.52 in October, the lowest level in five months, from a reading of 6.29 in September.
Analysts had expected the index to rise to 7.0 this month.
The greenback strengthened after Senate Majority Leader Harry Reid said Monday that “tremendous progress” had been made towards a deal to raise the U.S. debt ceiling and reopen the federal government, fuelling hopes that a compromise can be reached.
If an agreement to raise the government borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
However, any potential deal will still have to be approved by the House of Representatives, where Speaker John Boehner would have to decide whether to allow a vote or demand federal spending cuts.
The pound found some support earler, after data showed that the rate of consumer price inflation in the U.K. accelerated 2.7% on a year-over-year basis last month, unchanged from August.
Analysts had expected consumer price inflation to tick down to 2.6%.
Month-over-month, consumer price inflation rose by 0.4% in September, above expectations for a 0.3% increase.
Sterling was higher against the euro with EUR/GBP shedding 0.31%, to hit 0.8457.
Also Tuesday, data showed that German economic sentiment improved more-than-expected in October, rising to the highest level since April 2010.
The ZEW Centre for Economic Research said that its index of German economic sentiment rose by 3.2 points to hit 52.8 in October from September’s reading of 49.6. Analysts had expected an unchanged reading.