Investing.com - The pound was lower against the U.S. dollar on Tuesday, as market sentiment was dented by weak data out of the euro zone while concerns over the outlook for U.S. fiscal negotiations also weighed.
GBP/USD hit 1.6076 during European morning trade, the session low; the pair subsequently consolidated at 1.3122, shedding 0.18%.
Cable was likely to find support at 1.6020, Monday’s low and resistance at 1.6127, the session high.
Official data showed that the unemployment rate in the euro zone hit a new record high of 11.8% in November, up from 11.7% in October, underlining concerns over the outlook for growth in the region.
A separate report showed that euro zone retail sales increased 0.1% in November, compared to expectations for a 0.3% rise.
Overall market sentiment remained cautious amid uncertainty about continuing political wrangling in Washington over further U.S. budget cuts and raising the U.S. debt ceiling.
The pound was lower against the euro, with EUR/GBP up 0.20% to 0.8154.
The single currency remained supported after Japanese Finance Minister Taro Aso said Tuesday that his government would buy bonds issued by the European Stability Mechanism, the euro zone's permanent bailout fund, in order to help stabilize the financial situation in the bloc.
The ESM was scheduled to make its first issuance of securities later in the trading day, following its launch in October 2012.
GBP/USD hit 1.6076 during European morning trade, the session low; the pair subsequently consolidated at 1.3122, shedding 0.18%.
Cable was likely to find support at 1.6020, Monday’s low and resistance at 1.6127, the session high.
Official data showed that the unemployment rate in the euro zone hit a new record high of 11.8% in November, up from 11.7% in October, underlining concerns over the outlook for growth in the region.
A separate report showed that euro zone retail sales increased 0.1% in November, compared to expectations for a 0.3% rise.
Overall market sentiment remained cautious amid uncertainty about continuing political wrangling in Washington over further U.S. budget cuts and raising the U.S. debt ceiling.
The pound was lower against the euro, with EUR/GBP up 0.20% to 0.8154.
The single currency remained supported after Japanese Finance Minister Taro Aso said Tuesday that his government would buy bonds issued by the European Stability Mechanism, the euro zone's permanent bailout fund, in order to help stabilize the financial situation in the bloc.
The ESM was scheduled to make its first issuance of securities later in the trading day, following its launch in October 2012.