Forex – GBP/USD Hits 2-day High As Focus Stays On Euro Zone





The pound was up against the U.S. dollar on Tuesday, rising to a 2-day high as investors focused on euro zone debt problems ahead of a meeting of European finance ministers to formally to approve an aid package for Ireland.

GBP/USD hit 1.5778 during late Asian trade, the pair’s highest since Friday; the pair subsequently consolidated at 1.5775, gaining 0.39%.

Cable was likely to find support at 1.5655, Monday’s low and resistance at 1.5836, the high of November 24.

Earlier in the day, the British Retail Consortium said U.K. retail sales slowed in November, rising at an annualized rate of 0.7%, compared with a 0.8% gain in October, as consumers proved reluctant to splash out on expensive items at a time of public spending cuts and higher taxes.

“It has been another tough month,” said BRC Director General Stephen Robertson. “Total sales growth has been weak now for eight months in a row and given that VAT has pushed up annual inflation – boosting sales values – underlying volume growth is virtually zero.”

The pound also edged higher against the euro, with EUR/GBP slipping 0.02% to hit 0.8466.

Later Monday, the U.K. was to release official data on manufacturing and industrial production.