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Forex - Pound extends losses against dollar as oil prices ease

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Forex Pros - The pound extended losses against the broadly stronger U.S. dollar on Tuesday, as oil prices retreated from recent highs and weak U.K. data weighed on sentiment towards the currency.

GBP/USD hit 1.6142 during European afternoon trade, the pair's lowest since February 28; the pair subsequently consolidated at 1.6152, shedding 0.30%.

Cable was likely to find support at 1.6070, the low of February 28 and resistance at 1.6341, Monday's high.

The dollar's gains came after Kuwait's oil minister Sheikh Ahmad Abdullah al-Sabah said earlier that OPEC members were in talks to boost production for the first time in more than two years.

Such a move would mean the group was effectively putting a cap on prices to help keep the global economic recovery on track.

Elsewhere, the British Retail Consortium said earlier that retail sales fell at their fastest annual pace in 10 months in February. The group said like-for-like retail sales were 0.4% lower in February compared to a year ago, after a 2.3% rise in January.

Also Tuesday, the Royal Institution of Chartered Surveyors' said the proportion of surveyors reporting a rise in house prices minus those reporting a fall over the three months through February, rose to -26% from -31% in January. Analysts had expected the house price balance to decline to -25% in February.

Meanwhile, the pound was higher against the euro, with EUR/GBP shedding 0.22% to hit 0.8603.

Later in the day, the U.S. was to publish a report on economic optimism.

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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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