Forexpros – The pound was down against the U.S. dollar on Tuesday, falling to a daily low ahead of the release of U.K. data on bank lending and mortgage approvals.
GBP/USD hit 1.6348 during early European trade, the daily low; the pair subsequently consolidated at 1.6345, shedding 0.38%.
Cable was likely to find support at 1.6257, the low of August 25 and resistance at 1.6453, Monday’s high.
The pound weakened amid concerns that weak data would reinforce the view that the Bank of England is likely to leave interest rates on hold until well into 2012.
Risk appetite was boosted on Monday after official data showed that U.S. consumer spending rose at the fastest rate in five months in July and after Fed Chairman Ben Bernanke said Friday that there was no need for an immediate round of additional stimulus but left options open.
The pound was also fractionally lower against the euro, with EUR/GBP inching up 0.05% to hit 0.8848.
Later in the day, the BoE was produce data on net lending to individuals and mortgage approvals.
Also Tuesday, the U.S. was to release data on consumer confidence as well as an industry report on house price inflation. In addition, the Federal Reserve’s Open Market Committee was to publish the minutes of its August rate-setting meeting.
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