Investing.com – Sterling extended losses against the U.S. dollar on Tuesday, hitting a 9-day low after Fitch Ratings said Britain was falling behind other European countries in introducing deficit-reducing measures.
USD/GBP hit 1.4353 during late European trade, its lowest since May 26; the pair subsequently consolidated around 1.4357, shedding 0.75%.
The pair was likely to find support 1.4229, the low of May 20 and a 14-month low, and resistance at 1.4769, last Wednesday’s high.
Earlier Tuesday, analysts at the Fitch ratings agency wrote in a report that, “The scale of the U.K.’s fiscal challenge is formidable and warrants a strong medium-term consolidation strategy, including a faster pace of deficit reduction than set out in the April 2010 budget.”
The pound was down against the euro, meanwhile, with EUR/GBP gaining 0.74% to hit 0.8303.
Later Tuesday, Britain’s Chancellor of the Exchequer, George Osborne, was due to outline a significant acceleration in the pace of budget cuts, in response to statement from Fitch.
USD/GBP hit 1.4353 during late European trade, its lowest since May 26; the pair subsequently consolidated around 1.4357, shedding 0.75%.
The pair was likely to find support 1.4229, the low of May 20 and a 14-month low, and resistance at 1.4769, last Wednesday’s high.
Earlier Tuesday, analysts at the Fitch ratings agency wrote in a report that, “The scale of the U.K.’s fiscal challenge is formidable and warrants a strong medium-term consolidation strategy, including a faster pace of deficit reduction than set out in the April 2010 budget.”
The pound was down against the euro, meanwhile, with EUR/GBP gaining 0.74% to hit 0.8303.
Later Tuesday, Britain’s Chancellor of the Exchequer, George Osborne, was due to outline a significant acceleration in the pace of budget cuts, in response to statement from Fitch.