Forex - GBP/USD trims losses after better-than-expected U.S. data

Published 11/30/2010, 10:41 AM
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Investing.com – The pound trimmed losses against the U.S. dollar on Tuesday, retreating from an 11-week low after the release of a raft of broadly better-than-expected U.S. economic data.

GBP/USD clawed up from 1.5486, the pair’s lowest since September 15, to hit 1.5537 during European afternoon trade, shedding 0.21%.

Cable was likely to find short-term support at 1.5448, the low of September 15 and resistance at 1.5646, Monday’s high.

Earlier in the day, U.S. data showed that consumer confidence rose more-than-expected in November, rising to a 5-month high.

The Conference Board, a market research group said its index of consumer confidence rose to 54.1 in November, after rising to a revised 49.9 in October. Analysts had expected the index to rise to 52.0 in November.

The CB index of consumer expectations rose to 74.2 in November, compared to 67.5 in October.

Lynn Franco, director of The Conference Board Consumer Research Center said, “Consumers’ assessment of the current state of the economy and job market, while only slightly better than last month, suggests the economy is still expanding, albeit slowly.”

Separate reports showed that while U.S. home prices rose less-than-expected in September, the Chicago PMI rose unexpectedly in November.

Meanwhile, the pound was up against the euro, with EUR/GBP shedding 0.59% to hit 0.8376.

Also Tuesday, data showed that consumer confidence in the U.K. unexpectedly dropped to a four-month low in November as looming public-spending cuts dented Britons’ outlook for 2011.

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