Investing.com – The pound was up against the U.S. dollar on Tuesday, rising to a fresh 3-week high as a selloff in the dollar accelerated amid concerns over U.S. public finances and after Moody’s issued a warning on the country’s credit rating.
GBP/USD hit 1.5906 during late Asian trade, the pair’s highest since November 23; the pair subsequently consolidated at 1.5891, gaining 0.19%.
Cable was likely to find support at 1.5746, last Friday’s low and resistance at 1.5964, the high of November 23.
The dollar lost ground as U.S. Treasury yields dropped back ahead of the Federal Reserves monetary policy meeting later Tuesday.
On Monday, ratings agency Moody's warned that if U.S. President Barack Obama's tax and unemployment benefit package became law, debt levels could rise, increasing the likelihood of a negative outlook on the country’s credit rating.
Also Tuesday, the U.K. Royal Institute of Chartered Surveyors said its gauge of house prices stayed close to the lowest in 18 months in November as demand for homes waned.
“Fear over how future spending cuts will impact on the jobs market are clearly still weighing heavily on potential purchasers’ minds, with many deciding to ‘wait and see’ until the new year,” RICS spokesman Ian Perry said in a statement. “Meanwhile, the lack of mortgage finance continues to deter first-time buyers.”
Meanwhile, the pound was down against the euro, with EUR/GBP rising 0.30% to hit 0.8468.
Later in the day, the U.K. was to publish official data on consumer price inflation while the U.S. was to release official data on retail sales and producer price inflation. In addition the Federal Reserve was to announce its federal funds rate.
GBP/USD hit 1.5906 during late Asian trade, the pair’s highest since November 23; the pair subsequently consolidated at 1.5891, gaining 0.19%.
Cable was likely to find support at 1.5746, last Friday’s low and resistance at 1.5964, the high of November 23.
The dollar lost ground as U.S. Treasury yields dropped back ahead of the Federal Reserves monetary policy meeting later Tuesday.
On Monday, ratings agency Moody's warned that if U.S. President Barack Obama's tax and unemployment benefit package became law, debt levels could rise, increasing the likelihood of a negative outlook on the country’s credit rating.
Also Tuesday, the U.K. Royal Institute of Chartered Surveyors said its gauge of house prices stayed close to the lowest in 18 months in November as demand for homes waned.
“Fear over how future spending cuts will impact on the jobs market are clearly still weighing heavily on potential purchasers’ minds, with many deciding to ‘wait and see’ until the new year,” RICS spokesman Ian Perry said in a statement. “Meanwhile, the lack of mortgage finance continues to deter first-time buyers.”
Meanwhile, the pound was down against the euro, with EUR/GBP rising 0.30% to hit 0.8468.
Later in the day, the U.K. was to publish official data on consumer price inflation while the U.S. was to release official data on retail sales and producer price inflation. In addition the Federal Reserve was to announce its federal funds rate.