Investing.com – The pound was down against the U.S. dollar on Tuesday, falling to hit a 4-day low as concerns over the extent of planned U.K. government spending cuts continued to weigh on the pound.
GBP/USD hit 1.5816 during early European trade, the pair’s lowest since October 13; the pair subsequently consolidated at 1.5837, shedding 0.24%.
Cable was likely to find support at 1.5773, the low of October 13 and resistance at 1.6104, last Friday’s high and a 10-month high.
The pound’s losses came ahead of Chancellor George Osborne’s comprehensive spending review on Wednesday, amid speculation that the finance minister’s cuts won’t reduce the deficit fast enough.
Osborne has said that his measures to almost eliminate the GBP 156 billion deficit within four years are essential to prevent a loss of confidence from investors.
The pound was also down against the euro, with EUR/GBP gaining 0.12% to hit 0.8788.
Later in the day, the U.S. was to publish official data on building permits and housing starts.
GBP/USD hit 1.5816 during early European trade, the pair’s lowest since October 13; the pair subsequently consolidated at 1.5837, shedding 0.24%.
Cable was likely to find support at 1.5773, the low of October 13 and resistance at 1.6104, last Friday’s high and a 10-month high.
The pound’s losses came ahead of Chancellor George Osborne’s comprehensive spending review on Wednesday, amid speculation that the finance minister’s cuts won’t reduce the deficit fast enough.
Osborne has said that his measures to almost eliminate the GBP 156 billion deficit within four years are essential to prevent a loss of confidence from investors.
The pound was also down against the euro, with EUR/GBP gaining 0.12% to hit 0.8788.
Later in the day, the U.S. was to publish official data on building permits and housing starts.