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Forex - GBP/USD unchanged near 6-week high after U.S. data

Published 07/26/2011, 10:49 AM
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EUR/GBP
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Investing.com – The pound was largely unchanged against the broadly weaker U.S. dollar on Tuesday, trading close to a six-week high, after the release of a string of mixed U.S. economic data.

GBP/USD hit 1.6422 during early U.S. trade, the pair’s highest since June 14; the pair subsequently consolidated at 1.6394, gaining 0.73%.

Cable was likely to find support at 1.6120, the low of June 21 and resistance at 1.6440, the high of June 14.

Earlier in the day, official data showed that U.S. new home sales fell unexpectedly in June, but a sharp increase in prices and decreased supply suggested the market for new houses was starting to stabilize.

The Commerce Department said sales fell 1.0% to a seasonally adjusted 312,000-unit annual rate. Analysts had expected the number of new home sales to rise to 320,000 units.

A separate report showed that the S&P/Case-Shiller home price index fell slightly more-than-expected in May, declining for the eleventh consecutive month.

Elsewhere, the Conference Board said its index of consumer confidence rose to 59.5 in June from a downwardly revised 57.6 the month before. Economists had expected a reading of 56.0.

The greenback came under broad selling pressure earlier as talks aimed at lifting the U.S. debt ceiling remained deadlocked after U.S. President Barack Obama give no indications of a breakthrough.

Meanwhile, the pound was slightly lower against the euro, with EUR/GBP easing up 0.07% to hit 0.8840.

Also Tuesday, official data showed that the U.K. economy grew by just 0.2% in the second quarter, after rising by 0.5% in the previous quarter, bringing the annualized rate of growth to 0.7%, the lowest since the first quarter of 2010.


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