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Forex - Pound falls against broadly stronger dollar on Japan worries

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Forex Pros - The pound fell against the broadly stronger U.S. dollar on Tuesday, as the greenback was boosted by safe haven buying, amid concerns over Japan's ongoing nuclear crisis.

GBP/USD hit 1.6049 during European morning trade, the daily low; the pair subsequently consolidated at 1.6047, tumbling 0.77%.

Cable was likely to find support at 1.5976, Friday's low and a four-week low and resistance at 1.6199, Monday's high.

Earlier in the day, Japanese authorities said an explosion at the No. 2 reactor at the stricken Fukushima Daiichi nuclear power plant, located 155 miles northeast of Tokyo, appeared to have caused damage.

In a televised address following the blast, Japanese Prime Minister Naoto Kan said, "The possibility of further radioactive leakage is heightening. We are making every effort to prevent the leak from spreading. I know that people are very worried but I would like to ask you to act calmly."

The pound was also down against the yen, with GBP/JPY tumbling 0.86% to hit 130.86.

Later in the day, the U.S. Federal Reserve was to announce its federal funds rate. The U.S. was also to publish official data on manufacturing activity in the New York region.

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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.

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