Forexpros – The pound strengthened against the dollar in early Asian trading Tuesday as investors sold dollars amid global profit-taking after the greenback surged on news that North Korean leader Kim Jong il had died.
GBP/USD was trading at 1.5522, up 0.15%, a session high after dipping to 1.5497.
The pair was likely to test support at 1.5466 and resistance at 1.5545, the low and high prices from Monday, respectively.
The pound was weaker against the dollar in earlier trading on Monday, especially over reports that a group of European finance officials failed to arrange EUR200 billion in financing to go to the International Monetary Fund to help firewall the continent’s debt crisis.
Instead, the group came up with EUR150 billion, as London refused to go along with the plan in wake of a recent decision not to support greater E.U. fiscal authority.
However, investors shrugged off European fears for a little while and took up positions in other markets denominated in other currencies, including the pound.
FTSE 100 Index futures, for example, were up 0.42% in Asian trading at 5314.70.
Furthermore, the U.K. Nationwide Consumer Confidence numbers came in at 40 points for November, better than a forecast for 34 points and above 36 points in October.
The pound was up against the euro, with EUR/GBP down 0.10% at 0.8378, and up against the yen, with GPB/JPY up 0.07% at 121.06.
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