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Forex - GBP/USD rises as market sentiment firms up

Published 02/28/2012, 03:46 AM
GBP/USD
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EUR/GBP
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Investing.com - The pound was higher against the U.S. dollar on Tuesday, as market sentiment strengthened ahead of a liquidity boosting operation by the European Central Bank, while lower oil prices eased concerns over the outlook for the global growth.

GBP/USD hit 1.5876 during European morning trade, the session high; the pair subsequently consolidated at 1.5860, gaining 0.24%.

Cable was likely to find support at 1.5809, Monday’s low and short-term resistance at 1.5900, Monday’s high and an almost three-week high.

On Monday, Germany’s parliament endorsed the euro zone’s second bailout for Greece, by a comfortable margin.

Market reaction was muted after Monday’s announcement by ratings agency Standard & Poor’s that it had cut Greece’s long term credit rating to 'selective default'.

Investors were looking ahead to Wednesday's launch of the ECB’s second three-year long-term refinancing operation, after a similar liquidity injection in December eased pressure on peripheral euro zone bond markets.

The pound was lower against the euro, with EUR/GBP rising 0.16% to hit 0.8479.

Later in the day, the U.K. was to produce industry data on retail sales, while the U.S. was to produce official data on durable goods orders, as well as reports on house price inflation and consumer confidence.


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