Forexpros – The pound was steady against the U.S. dollar on Tuesday, trading close to a three-day high, as sustained concerns over the deepening crisis in the euro zone weighed, while investors looked ahead to U.K. inflation data later in the session.
GBP/USD hit 1.5848 during European morning trade, the pair’s highest since May 15; the pair subsequently consolidated at 1.5838, inching up 0.03%.
Cable was likely to find support at 1.5778, Monday’s low and resistance at 1.5931, the high of May 15.
Market sentiment remained fragile ahead of Wednesday’s European Union summit, amid concerns over a divide between France’s new President Francois Hollande, who favors measures designed to support growth and pro-austerity Germany.
Meanwhile, investors were eyeing U.K. data on consumer price inflation after last week’s Bank of England inflation report warned of the risk to the U.K. economic recovery stemming from the euro zone crisis and sparked speculation over the possibility of fresh easing measures from the central bank.
The pound was higher against the euro, with EUR/GBP slipping 0.14% to hit 0.8082.
Also Tuesday, the U.K. was to release official data on public sector borrowing, while the U.S. was to release industry data on existing home sales.
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