We have updated our privacy policy and terms & conditions. Find out more here.

Forex - GBP/USD trims gains, remains near 3-month high

ForexDec 19, 2012 03:26PM GMT Add a Comment
Share with a Friend
Thanks for sharing
Emails have been sent to:
To send more emails click here
Investing.com - The pound trimmed gains against the U.S. dollar on Wednesday, but remained close to a three-month high as markets awaited the conclusion of U.S. budget talks, while the minutes of the Bank of England's policy meeting continued to support demand for sterling.

GBP/USD pulled away from 1.6306, the pair's highest since September 21, to hit 1.6268 during U.S. morning trade, still up 0.10%.

Cable was likely to find support at 1.6244, the session low and resistance at 1.6308, the high of September 21 and a five-month high.

Market sentiment was boosted by signs of progress in negotiations aimed at avoiding automatic tax hikes and spending cuts due to take effect on January 1, which investors fear could threaten U.S. and global growth.

Meanwhile, the pound found support after the minutes of the BoE’s December meeting showed that the monetary policy committee was split eight-to-one, with just one member in favor of further easing, while the vote to leave interest rates unchanged at 0.5% was unanimous.

In the U.S., the Census Bureau said that housing starts fell by 3% in November to a seasonally adjusted 0.861 million, compared to a 2.5% decline to 0.873 million.

Housing starts for October were revised down to 0.888 million units from a previously reported 0.894 million units.

The report also showed that the number of building permits issued in November jumped 3.6% to a seasonally adjusted 0.899 million, compared to expectations for a gain of 0.8% to 0.875 million.

Building permits issued in October totaled 0.868 million units.

The pound was lower against the euro with EUR/GBP adding 0.15%, to hit 0.8151.

Also Wednesday, data showed that German business confidence continued to improve in December, in spite of the deteriorating outlook for the euro zone economy.

The Ifo economic institute's German business climate index came in at 102.4 points this month, up from 101.4 in November, beating analysts' expectations for a reading of 102.0.

Forex - GBP/USD trims gains, remains near 3-month high

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?

Successfully Reported

Thank you. This comment has been flagged for a moderator.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.