Investing.com - The pound was slightly higher against the dollar on Tuesday as concerns over the political impasse in Washington eased and data showed that consumer prices in the U.K. were unchanged last month.
GBP/USD hit 1.6007 during European morning trade, the session high; the pair subsequently consolidated at 1.5993, edging up 0.07%.
Cable was likely to find support at 1.5912, the low of October 10 and resistance at 1.6087, the high of September 25.
Market sentiment was boosted 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 briefly touched session highs after the Office for National Statistics said 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.
Elsewhere, sterling was slightly higher against the euro, with EUR/GBP slipping 0.11% to 0.8474.
The ZEW Institute was to release its closely watched report on German economic sentiment later Tuesday, while the U.S. was to release a report on manufacturing activity in the Empire state.
GBP/USD hit 1.6007 during European morning trade, the session high; the pair subsequently consolidated at 1.5993, edging up 0.07%.
Cable was likely to find support at 1.5912, the low of October 10 and resistance at 1.6087, the high of September 25.
Market sentiment was boosted 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 briefly touched session highs after the Office for National Statistics said 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.
Elsewhere, sterling was slightly higher against the euro, with EUR/GBP slipping 0.11% to 0.8474.
The ZEW Institute was to release its closely watched report on German economic sentiment later Tuesday, while the U.S. was to release a report on manufacturing activity in the Empire state.