Forex Pros – The pound was down for a second day against the U.S. dollar on Tuesday, as risk aversion arising from escalating violence in North Africa and the Middle East weighed.
GBP/USD hit 1.6132 during European morning trade, the pair’s lowest since February 17; the pair subsequently consolidated at 1.6143, declining 0.51%.
Cable was likely to find support at 1.6074, the low of February 15 and resistance at 1.6257, Monday’s high.
Violent protests intensified in Libya overnight in the most serious challenge to the 42-year rule of leader Muammar Qaddafi after government warplanes fired at protestors, according to Al-Jazeera.
The International Federation for Human Rights said more than 300 people have been killed in the past week. Al Arabiya television said 160 died in violence in the capital, Tripoli.
In addition to Libya, anti-government demonstrations continued in several other nations in the Mideast and North Africa, including Bahrain, Yemen, Iran and Morocco.
Meanwhile, the pound was up against the euro, with EUR/GBP shedding 0.33% to hit a two-day low of 0.8398.
Later in the day, the U.K. was to publish official data on public sector net borrowing, while the U.S. was to publish data on consumer confidence compiled by the Conference Board as well as industry data on house prices and a report on manufacturing activity in Richmond.
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