Show me the money!
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* Sterling hits 6-month high of $1.5968 GBP=D4
* Next target $1.5970, strong resistance seen ahead of $1.60
* Dollar hurt broadly by lower U.S. growth, rates outlook
LONDON, Aug 3 (Reuters) - Sterling hit a six-month high against a broadly weaker dollar on Tuesday, lifted by expectations the UK will continue to recover after recent upbeat economic data and robust bank earnings.
The pound also benefited from across-the-board weakening of the U.S. dollar on concerns about a slowing U.S. economy and speculation of further monetary easing by the U.S. Federal Reserve. [FRX/]
The pound rose to as high as $1.5968, its highest since early February, stopping just short of $1.5970, the 61.8 percent retracement of its move down from a high in August 2009 of $1.7044 to May's low of $1.4225.
Analysts and traders, however, believe sterling will face stiff resistance on the approach to $1.60, both because it is a key psychological level and due to reported options barriers around there.
"Sterling has had a really good run recently, but it needs fresh impetus to make a sustainable break above $1.60," said Audrey Childe-Freeman, currency strategist at Brown Brothers Harriman.
By 1527 GMT, the pound was 0.3 percent higher on the day at $1.5939 GBP=D4.
* Next target $1.5970, strong resistance seen ahead of $1.60
* Dollar hurt broadly by lower U.S. growth, rates outlook
LONDON, Aug 3 (Reuters) - Sterling hit a six-month high against a broadly weaker dollar on Tuesday, lifted by expectations the UK will continue to recover after recent upbeat economic data and robust bank earnings.
The pound also benefited from across-the-board weakening of the U.S. dollar on concerns about a slowing U.S. economy and speculation of further monetary easing by the U.S. Federal Reserve. [FRX/]
The pound rose to as high as $1.5968, its highest since early February, stopping just short of $1.5970, the 61.8 percent retracement of its move down from a high in August 2009 of $1.7044 to May's low of $1.4225.
Analysts and traders, however, believe sterling will face stiff resistance on the approach to $1.60, both because it is a key psychological level and due to reported options barriers around there.
"Sterling has had a really good run recently, but it needs fresh impetus to make a sustainable break above $1.60," said Audrey Childe-Freeman, currency strategist at Brown Brothers Harriman.
By 1527 GMT, the pound was 0.3 percent higher on the day at $1.5939 GBP=D4.
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- groups:
- Greatest Depression
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- tags:
- Money, England, Great Britain, pound, 3 more
