Investing.com – The pound edged higher against the U.S. dollar on Tuesday, but gains were limited as investors remained jittery ahead of the outcome of a critical Italian parliamentary vote on budget reforms later in the day.
GBP/USD hit 1.6088 during early European trade, the session high; the pair subsequently consolidated at 1.6081, rising 0.17%.
Cable was likely to find support at 1.5945, last Friday’s low and resistance at 1.6151, the high of October 28.
Italian Prime Minister Silvio Berlusconi’s government was to face a crunch vote, which would test the prime ministers majority in parliament and determine if he has enough support to stay in power and implement austerity measures.
On Monday, Berlusconi denied speculation that he was planning to resign after Italy’s borrowing costs surged to euro-era highs.
In the U.K., a report showed that retail sales declined in October, adding to concerns over the outlook for the economy.
The British Retail Consortium said retail sales were down 0.6% compared to October 2010 as consumer cut back spending on non-food items.
The pound also edged higher against the euro, with EUR/GBP dipping 0.07% to hit 0.8574.
Later in the day, the U.K. was to publish official data on manufacturing production, while the National Institute of Economic and Social Research was to publish its monthly GDP estimate.
GBP/USD hit 1.6088 during early European trade, the session high; the pair subsequently consolidated at 1.6081, rising 0.17%.
Cable was likely to find support at 1.5945, last Friday’s low and resistance at 1.6151, the high of October 28.
Italian Prime Minister Silvio Berlusconi’s government was to face a crunch vote, which would test the prime ministers majority in parliament and determine if he has enough support to stay in power and implement austerity measures.
On Monday, Berlusconi denied speculation that he was planning to resign after Italy’s borrowing costs surged to euro-era highs.
In the U.K., a report showed that retail sales declined in October, adding to concerns over the outlook for the economy.
The British Retail Consortium said retail sales were down 0.6% compared to October 2010 as consumer cut back spending on non-food items.
The pound also edged higher against the euro, with EUR/GBP dipping 0.07% to hit 0.8574.
Later in the day, the U.K. was to publish official data on manufacturing production, while the National Institute of Economic and Social Research was to publish its monthly GDP estimate.