Forex - GBP/USD almost unchanged, geopolitical tensions weigh

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Investing.com - The pound was almost unchanged against the U.S. dollar on Tuesday, as positive U.K. public sector borrowing data lent some support but concerns over geopolitical tensions in Ukraine and the Middle East continued to weigh.

GBP/USD hit 1.7059 during European morning trade, the session low; the pair subsequently consolidated at 1.7068, dipping 0.04%.

Cable was likely to find support at 1.7037, the low of July 18 and resistance at 1.7118, the high of July 18.

Earlier Tuesday, official data showed that the U.K. public finances showed a bigger than expected deficit in June. The U.K. borrowed £11.38 billion last month, compared to expectations for a deficit of £10.66 billion. In the same month last year, the U.K. borrowed £7.59 billion.

But investors were cautious as tensions between Russia and the West remained high in the wake of the downing of a Malaysian airliner in eastern Ukraine late last week, while Israel's ground offensive in Gaza was also in focus.

Markets turned their attention to a meeting of euro zone foreign ministers later on Tuesday to discuss further sanctions against Russia.

Separately, hopes for a ceasefire in Gaza mounted after U.S. Secretary of State John Kerry and United Nations chief Ban Ki Moon arrived in Cairo for talks aimed at stopping the violence.

Sterling was higher against the euro, with EUR/GBP shedding 0.23% to 0.7902.

Later in the day, the U.S. was to release reports on consumer price inflation and existing home sales.

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This article appears in: Investing , Forex and Currencies

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