Investing.com - The pound extended losses against the dollar on Tuesday, falling to fresh session lows as indications that the U.S. is moving closer to taking military action against the Syrian government hit market sentiment.
GBP/USD hit 1.5489 during European afternoon trade, the lowest since August 14; the pair subsequently consolidated at 1.5491, shedding 0.53%.
Cable was likely to find support at 1.542, the low of August 14 and resistance at 1.5591, the session high.
Demand for the safe haven dollar was bolstered as expectations for a military strike against Syria grew after U.S. Secretary of State John Kerry said there was “undeniable” proof that the government had used chemical weapons against civilians.
Meanwhile, uncertainty over how soon the Federal Reserve will start to reduce stimulus continued after data on Monday showed that U.S. durable goods orders fell more than expected last month.
The Commerce Department said U.S. durable goods orders dropped 7.3% in July, worse than expectations for a 4% decline. It was the largest drop since August 2012. The weak data raised doubts over the strength of the U.S. economic recovery.
Elsewhere, sterling was lower against the euro, with EUR/GBP rising 0.29% to 0.8607.
The euro found support after a report showed that the Ifo index of German business climate rose to a 16-month high of 107.5 in August from 106.2 in July. Economists had expected the index to tick up to 107.0.
The Current Assessment Index rose to 112.0 in August from 110.1 in July, compared to expectations for an increase to 110.9.
Investors were looking ahead to a report on U.S. house price inflation, as well as closely watched data on U.S. consumer confidence later Tuesday.
GBP/USD hit 1.5489 during European afternoon trade, the lowest since August 14; the pair subsequently consolidated at 1.5491, shedding 0.53%.
Cable was likely to find support at 1.542, the low of August 14 and resistance at 1.5591, the session high.
Demand for the safe haven dollar was bolstered as expectations for a military strike against Syria grew after U.S. Secretary of State John Kerry said there was “undeniable” proof that the government had used chemical weapons against civilians.
Meanwhile, uncertainty over how soon the Federal Reserve will start to reduce stimulus continued after data on Monday showed that U.S. durable goods orders fell more than expected last month.
The Commerce Department said U.S. durable goods orders dropped 7.3% in July, worse than expectations for a 4% decline. It was the largest drop since August 2012. The weak data raised doubts over the strength of the U.S. economic recovery.
Elsewhere, sterling was lower against the euro, with EUR/GBP rising 0.29% to 0.8607.
The euro found support after a report showed that the Ifo index of German business climate rose to a 16-month high of 107.5 in August from 106.2 in July. Economists had expected the index to tick up to 107.0.
The Current Assessment Index rose to 112.0 in August from 110.1 in July, compared to expectations for an increase to 110.9.
Investors were looking ahead to a report on U.S. house price inflation, as well as closely watched data on U.S. consumer confidence later Tuesday.