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Forex - GBP/USD slips lower in cautious trade

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Investing.com - The pound slipped lower against the U.S. dollar on Tuesday, as investors remained cautious ahead of highly anticipated policy statements by the Federal Reserve and the Bank of England this week.

GBP/USD hit 1.5296 during European afternoon trade, the pair's lowest since July 25; the pair subsequently consolidated at 1.5313, edging down 0.17%.

Cable was likely to find support at 1.5196, the low of July 19 and resistance at 1.5413, Monday's high.

Markets were jittery ahead of the Fed's upcoming monetary policy statement after a recent string of U.S. economic reports fuelled further uncertainty over whether the central bank will soon begin to scale back its bond-buying program.

On Monday, industry data showed that U.S. pending home sales fell 0.4% in June, less than the expected 1% decline, after a 5.8% rise the previous month.

Market participants were also eyeing the BoE's policy statement on Thursday for indications on the future of the bank's monetary stimulus program, after official data last week showed that growth in the U.K. economy accelerated in line with expectations in the second quarter.

Sterling was lower against the euro with EUR/USD rising 0.32%, to hit 0.8674.

The single currency found support after data earlier showed that the Gfk German consumer climate index rose more-than-expected in July, ticking up to 7.0 from a reading of 6.8 the previous month.

Analysts had expected the index to rise to 6.9 this month.

Later in the day, the U.S. was to release data on the Standard & Poor's/Case-Shiller Composite-20 house price index, followed by the Conference Board's report on consumer confidence.

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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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