Investing.com – The pound held gains against the broadly weaker U.S. dollar on Tuesday, trading close to a two-day high as market sentiment strengthened as equities rebounded and peripheral euro zone bond yields eased.
GBP/USD hit 1.6160 during early U.S. trade, the pair’s highest since July 15; the pair subsequently consolidated at 1.6143, gaining 0.55%.
Cable was likely to find support at 1.6004, Monday’s low and short-term resistance at 1.6193, the high of July 14 and a three-week high.
Market sentiment was bolstered as yields on Italian and Spanish government bonds retreated slightly after rising sharply on Monday amid fears over sovereign debt contagion in the euro zone.
Meanwhile, Spain auctioned close to the targeted amount of EUR4.5 billion of 12 and 18-month Treasury bills, but at sharply higher borrowing costs than at a previous auction in June.
On Thursday, euro zone leaders were to meet in Brussels attempt to finalize a second EUR110 billion bailout for Greece and discuss the overall financial stability of the single currency bloc.
The pound is seen as particularly vulnerable to the debt crisis in the euro zone, due to the exposure of British lenders to euro zone sovereign debt and because of the U.K.’s close trade ties with the region.
Elsewhere, the pound dipped against the euro, with EUR/GBP easing up 0.08% to hit 0.8795.
Also Tuesday, official data showed U.S. housing starts rose more than expected in June to touch a six-month high and permits for future construction unexpectedly increased.
GBP/USD hit 1.6160 during early U.S. trade, the pair’s highest since July 15; the pair subsequently consolidated at 1.6143, gaining 0.55%.
Cable was likely to find support at 1.6004, Monday’s low and short-term resistance at 1.6193, the high of July 14 and a three-week high.
Market sentiment was bolstered as yields on Italian and Spanish government bonds retreated slightly after rising sharply on Monday amid fears over sovereign debt contagion in the euro zone.
Meanwhile, Spain auctioned close to the targeted amount of EUR4.5 billion of 12 and 18-month Treasury bills, but at sharply higher borrowing costs than at a previous auction in June.
On Thursday, euro zone leaders were to meet in Brussels attempt to finalize a second EUR110 billion bailout for Greece and discuss the overall financial stability of the single currency bloc.
The pound is seen as particularly vulnerable to the debt crisis in the euro zone, due to the exposure of British lenders to euro zone sovereign debt and because of the U.K.’s close trade ties with the region.
Elsewhere, the pound dipped against the euro, with EUR/GBP easing up 0.08% to hit 0.8795.
Also Tuesday, official data showed U.S. housing starts rose more than expected in June to touch a six-month high and permits for future construction unexpectedly increased.