Investing.com – The pound extended earlier losses against the U.S. dollar on Tuesday, plummeting to a 13-day low, after an unexpected rate hike by China’s central bank saw risk aversion rise sharply.
GBP/USD hit 1.5698 during European afternoon trade, the pair’s lowest since September 30; the pair subsequently consolidated at 1.5715, plunging 1.01%.
Cable was likely to find support at 1.5601, the low of September 22 and resistance at 1.6002, Monday’s high.
Earlier in the day, the People’s Bank of China said it had raised its benchmark deposit and lending rates by 0.25% for the first time since December 2007. China cut interest rates several times in between September and December of 2008 as the financial crisis began to take hold.
The move sparked fears over a potential slowdown in the rate of global economic growth and saw investors return to the safe haven of the U.S. dollar.
Meanwhile, the pound was up against the euro, with EUR/GBP shedding 0.05% to hit 0.8774.
Also Tuesday, official data showed that U.S. building permits fell unexpectedly in October while housing starts rose more-than-expected.
GBP/USD hit 1.5698 during European afternoon trade, the pair’s lowest since September 30; the pair subsequently consolidated at 1.5715, plunging 1.01%.
Cable was likely to find support at 1.5601, the low of September 22 and resistance at 1.6002, Monday’s high.
Earlier in the day, the People’s Bank of China said it had raised its benchmark deposit and lending rates by 0.25% for the first time since December 2007. China cut interest rates several times in between September and December of 2008 as the financial crisis began to take hold.
The move sparked fears over a potential slowdown in the rate of global economic growth and saw investors return to the safe haven of the U.S. dollar.
Meanwhile, the pound was up against the euro, with EUR/GBP shedding 0.05% to hit 0.8774.
Also Tuesday, official data showed that U.S. building permits fell unexpectedly in October while housing starts rose more-than-expected.