Investing.com - The pound pulled away from five-month lows against the dollar on Tuesday, but gains were limited ahead of a number of significant U.S. economic events, while concerns over the faltering U.K. economy also weighed.
GBP/USD hit 1.5743 during European afternoon trade, the session high; the pair subsequently consolidated at 1.5725, rising 0.21%.
Cable was likely to find support at 1.5673, Monday’ low and a five-month low and resistance at 1.5784, Monday’s high.
Safe haven demand found support as investors looked ahead to the outcome of the Federal Reserve’s policy meeting and U.S. data on fourth quarter growth on Wednesday, as well as Friday’s U.S. nonfarm payrolls report.
The pound remained under pressure after data on Friday showed that the U.K. economy contracted 0.3% in the fourth quarter, putting Britain on track for a triple-dip recession.
Meanwhile, comments by incoming BoE Governor Mark Carney over the weekend were seen as increasing the likelihood for more easing measures by the central bank.
Mr. Carney said he would be willing to see inflation remain above the central bank’s 2% target for longer if this helped spur growth.
Elsewhere, the pound was higher against the euro, with EUR/GBP down 0.42% to 0.8537.
The U.S. was to release reports on house price inflation and consumer confidence later in the trading day.
GBP/USD hit 1.5743 during European afternoon trade, the session high; the pair subsequently consolidated at 1.5725, rising 0.21%.
Cable was likely to find support at 1.5673, Monday’ low and a five-month low and resistance at 1.5784, Monday’s high.
Safe haven demand found support as investors looked ahead to the outcome of the Federal Reserve’s policy meeting and U.S. data on fourth quarter growth on Wednesday, as well as Friday’s U.S. nonfarm payrolls report.
The pound remained under pressure after data on Friday showed that the U.K. economy contracted 0.3% in the fourth quarter, putting Britain on track for a triple-dip recession.
Meanwhile, comments by incoming BoE Governor Mark Carney over the weekend were seen as increasing the likelihood for more easing measures by the central bank.
Mr. Carney said he would be willing to see inflation remain above the central bank’s 2% target for longer if this helped spur growth.
Elsewhere, the pound was higher against the euro, with EUR/GBP down 0.42% to 0.8537.
The U.S. was to release reports on house price inflation and consumer confidence later in the trading day.