Investing.com – The pound was down against the U.S. dollar on Wednesday, dropping to a 2-day low after U.S. Treasury yields made significant gains on a proposed extension in U.S. tax cuts.
GBP/USD hit 1.5669 during late Asian trade, the pair’s lowest since December 6; the pair subsequently consolidated at 1.5724, shedding 0.21%.
Cable was likely to find support at 1.5580, the low of December 3 and resistance at 1.5787, the high of December 3.
The decision by U.S. President Barack Obama to extend tax cuts for two years triggered selling of fixed-income securities. The tax cuts could potentially reduce pressure on the Federal Reserve to extend its USD600 billion bond-purchase program, while boosting U.S. growth.
Elsewhere, the British Retail Consortium late Tuesday said U.K. shop price inflation remained extremely subdued in November, rising by just 0.1% on the month and rising 2.0% on the year.
The data bolstered the case made by senior Bank of England policymakers that inflation is being driven by one-off effects, such as VAT, energy prices and pound weakness.
Meanwhile, the pound was up against the euro, with EUR/GBP slipping 0.09% to hit 0.8408.
Later in the day, the U.K. was to publish data on industrial order expectations.
GBP/USD hit 1.5669 during late Asian trade, the pair’s lowest since December 6; the pair subsequently consolidated at 1.5724, shedding 0.21%.
Cable was likely to find support at 1.5580, the low of December 3 and resistance at 1.5787, the high of December 3.
The decision by U.S. President Barack Obama to extend tax cuts for two years triggered selling of fixed-income securities. The tax cuts could potentially reduce pressure on the Federal Reserve to extend its USD600 billion bond-purchase program, while boosting U.S. growth.
Elsewhere, the British Retail Consortium late Tuesday said U.K. shop price inflation remained extremely subdued in November, rising by just 0.1% on the month and rising 2.0% on the year.
The data bolstered the case made by senior Bank of England policymakers that inflation is being driven by one-off effects, such as VAT, energy prices and pound weakness.
Meanwhile, the pound was up against the euro, with EUR/GBP slipping 0.09% to hit 0.8408.
Later in the day, the U.K. was to publish data on industrial order expectations.