Investing.com - The pound was steady against the U.S. dollar on Tuesday, as hopes that euro zone finance ministers would unlock Greece’s next tranche of bailout funds offset a downgrade on France by ratings agency Moody’s.
GBP/USD hit 1.5936 during European afternoon trade, the session high; the pair subsequently consolidated at 1.5916, inching up 0.07%.
Cable was likely to find support at 1.5834, the low of November 16 and resistance at 1.6018, the high of November 9.
Euro zone finance ministers were to hold talks in Brussels later in the day to discuss whether Greece can receive its next tranche of bailout funds.
Last week, European leaders granted Greece an additional two years to cut its budget deficit, which resulted in a disagreement with the International Monetary Fund, as it will add to the country’s debt burden.
Market sentiment was dented earlier after Moody’s downgraded France by one notch to Aa1 from Aaa with a negative outlook overnight, citing a deteriorating growth outlook for the euro zone’s second-largest economy.
The announcement did not come as a surprise to markets after Standard & Poor’s cut France’s rating in January.
Elsewhere in the euro zone, Spain successfully auctioned EUR5 billion of short term government bonds at lower borrowing costs, easing pressure on the country to request a bailout.
Sterling was slightly higher against the euro, with EUR/GBP slipping 0.11% to 0.8045.
Later Tuesday, the U.S. was to publish official data on building permits and housing starts, while Federal Reserve Chairman Ben Bernanke was to speak at an event in New York.
GBP/USD hit 1.5936 during European afternoon trade, the session high; the pair subsequently consolidated at 1.5916, inching up 0.07%.
Cable was likely to find support at 1.5834, the low of November 16 and resistance at 1.6018, the high of November 9.
Euro zone finance ministers were to hold talks in Brussels later in the day to discuss whether Greece can receive its next tranche of bailout funds.
Last week, European leaders granted Greece an additional two years to cut its budget deficit, which resulted in a disagreement with the International Monetary Fund, as it will add to the country’s debt burden.
Market sentiment was dented earlier after Moody’s downgraded France by one notch to Aa1 from Aaa with a negative outlook overnight, citing a deteriorating growth outlook for the euro zone’s second-largest economy.
The announcement did not come as a surprise to markets after Standard & Poor’s cut France’s rating in January.
Elsewhere in the euro zone, Spain successfully auctioned EUR5 billion of short term government bonds at lower borrowing costs, easing pressure on the country to request a bailout.
Sterling was slightly higher against the euro, with EUR/GBP slipping 0.11% to 0.8045.
Later Tuesday, the U.S. was to publish official data on building permits and housing starts, while Federal Reserve Chairman Ben Bernanke was to speak at an event in New York.