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by ForexNewsNow Team on October 19, 2010

Pound falls for third day versus dollar ahead of CBI data

intraday analysis - Timothy GeithnerNEW YORK (Forex News Now) – Sterling fell for a third day against the U.S. dollar on Tuesday, ahead of a report on U.K. factory orders and after the U.S. treasury secretary denied Washington was deliberately weakening the dollar.

In late European currency market trading, GBP/USD hit 1.5825, down 0.32 percent on the day.

The Confederation of British Industry, a trade group, was later due to publish its closely watched monthly industrial trends survey for October. Later in the day, the U.S. was also to release important data on building permits and housing starts.

According to GBP USD analysis, cable was likely to touch support around the low of Oct. 12, 1.5754, and encounter resistance around Friday’s high, 1.6109.

Meanwhile, the U.S. treasury secretary, Tim Geithner, denied on Monday that the U.S. was trying to devalue the greenback to prop up its economy.

“It is very important for people to understand that the United States of America and no country around the world can devalue its way to prosperity and competitiveness,” Geithner said at a meeting in California.

“It is not a viable, feasible strategy and we will not engage in it.”

Elsewhere, sterling slipped slightly versus the yen: GBP/JPY traded at 128.91, down 0.09 percent, according to intraday analysis.

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