Investing.com – The pound slipped against the U.S. dollar on Tuesday, pulling back from a six-week high as comments by German Chancellor Angela Merkel cast doubts over the outcome of Wednesday’s key European Union summit meeting.
GBP/USD hit 1.5958 during U.S. morning trade, the daily low; the pair subsequently consolidated at 1.5978, slipping 0.12%.
Cable was likely to find support at 1.5899, Monday’s low and resistance at 1.6082, the high of September 8.
Market sentiment was hit after German Chancellor Angela Merkel said Germany did not support language in a draft proposal for the EU summit which suggested that the European Central Bank should continue purchasing bonds on the secondary market.
The remarks cast doubts over hopes that European leaders would be able to make a breakthrough on a comprehensive plan to tackle the debt crisis in the region at Wednesday’s highly anticipated meeting.
In the U.K., BoE Deputy Governor Charles Bean told the U.K. parliament's Treasury Select Committee earlier that the central bank’s second round of monetary stimulus was likely to add half a percentage point to the U.K. inflation rate and approximately half a percentage point to growth.
The BoE voted unanimously to implement a second round of easing at its October policy meeting, amid concerns over weakening economic conditions in the U.K.
Meanwhile, the pound was up against the euro, with EUR/GBP slipping 0.11% to hit 0.8696.
Also Tuesday, a report from the Conference Board showed that U.S. consumer confidence tumbled in October, nearing 2008-2009 recession levels. The index dropped to 39.8 from a reading of 46.6 the previous month, disappointing expectations for a decline to 46.1.
A separate report showed that the U.S. S&P/Case-Shiller home price index fell by 3.8% in August, surpassing expectations for a 3.5% slide and marking the fourteenth consecutive monthly decline.
GBP/USD hit 1.5958 during U.S. morning trade, the daily low; the pair subsequently consolidated at 1.5978, slipping 0.12%.
Cable was likely to find support at 1.5899, Monday’s low and resistance at 1.6082, the high of September 8.
Market sentiment was hit after German Chancellor Angela Merkel said Germany did not support language in a draft proposal for the EU summit which suggested that the European Central Bank should continue purchasing bonds on the secondary market.
The remarks cast doubts over hopes that European leaders would be able to make a breakthrough on a comprehensive plan to tackle the debt crisis in the region at Wednesday’s highly anticipated meeting.
In the U.K., BoE Deputy Governor Charles Bean told the U.K. parliament's Treasury Select Committee earlier that the central bank’s second round of monetary stimulus was likely to add half a percentage point to the U.K. inflation rate and approximately half a percentage point to growth.
The BoE voted unanimously to implement a second round of easing at its October policy meeting, amid concerns over weakening economic conditions in the U.K.
Meanwhile, the pound was up against the euro, with EUR/GBP slipping 0.11% to hit 0.8696.
Also Tuesday, a report from the Conference Board showed that U.S. consumer confidence tumbled in October, nearing 2008-2009 recession levels. The index dropped to 39.8 from a reading of 46.6 the previous month, disappointing expectations for a decline to 46.1.
A separate report showed that the U.S. S&P/Case-Shiller home price index fell by 3.8% in August, surpassing expectations for a 3.5% slide and marking the fourteenth consecutive monthly decline.