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Forex - GBP/USD remains lower in subdued trade

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Investing.com - The pound remained lower against the U.S. dollar in subdued trade on Tuesday, as disappointing U.K. data continued to weigh on demand for sterling, while a string of U.S. reports painted a mixed picture of the strength of the country's economic recovery.

GBP/USD hit 1.5135 during U.S. morning trade, the pair's lowest since March 21; the pair subsequently consolidated at 1.51660, slipping 0.09%.

Cable was likely to find support at 1.5093, the low of March 21 and resistance at 1.5258, Monday's high.

The pound remained under pressure after the Confederation of British Industry earlier said that its index of realized sales fell unexpectedly to zero in March, from a reading of 8 the previous month. Analysts had expected the index to rise to 12 this month.

In the U.S., the Conference Board said its index of consumer sentiment fell unexpectedly in March, sliding down to 59.7 from a reading of 68.0 the previous month. Analysts had expected the index to remain unchanged this month.

A separate report showed that new home sales in the U.S. rose 411,000 in February, disappointing expectations for a 422,000 increase, after a 431,000 rise the previous month.

The Standard & Poor's/Case Shiller composite 20 house price index rose to an annualized rate of 8.1% in January, from 6.8% the previous month, beating expectations for a rise to 7.9%.

In addition, the Census Bureau said that U.S. core durable goods orders fell 0.5% in February, disappointing expectations for a 0.5% rise, after a 2.9% increase the previous month.

However, durable goods orders, including transportation items, rose 5.7% last month, more than the expected 3.8% increase, following a 3.8% decline in January.

The pound was also lower against the euro with EUR/GBP edging 0.19% higher, to hit 0.8484.

Sentiment on the euro remained vulnerable after Eurogroup head, Jeroen Dijsselbloem, said on Monday that the rescue program agreed for Cyprus represents a new model for resolving euro zone banking problems and other countries may have to restructure their banking sectors.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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