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COZforex: The pound edged lower against the US dollar on Tuesday, as upbeat US home sales data lent support to the greenback and markets continued to monitor developments in Ukraine and the Middle East.
GBP/USD hit 1.7050 amid US morning trade, the pair's lowest since July 17; the pair subsequently consolidated at 1.7049, edging down 0.17%. COZforex senior currency strategist Ian • Quigley said, GBP/USD is predicted to find support at 1.7054, and a drop through could take it to the next support line of 1.7032. Meanwhile, the pair is predicted to find its first resistance at 1.7100, and a rise through could take it to the next resistance line of 1.7124.
The National Association of Realtors said that existing home sales increased 2.6% to 5.04 million units last month from 4.91 million in May. Analysts had expected existing home sales to rise 2% to 4.97 million units in June.
The data came after the US Department of Labor said that consumer prices rose by 0.3% last month, meeting estimates, after rising 0.4% in May. Year-over-year, consumer prices rose at an annualized rate of 2.1% in June, in line with expectations and unchanged from May.
Consumer prices, excluding food and energy costs, inched up 0.1% last month, compared to expectations for a 0.2% gain. Core consumer prices rise 0.3% in May.
Earlier Tuesday, official data showed that the UK public finances showed a bigger than expected deficit in June. The UK borrowed £11.38 billion last month, compared to expectations for a deficit of £10.66 billion. In the same month last year, the UK borrowed £7.59 billion.
In a separate report, the Confederation of British Industry said that its index for industrial order expectations declined to 2 this month, from a reading of 11 in June, compared to expectations for a fall to 8.
Market sentiment mildly recovered on Tuesday, but investors continued to eye heightened tensions between the West and Russia following the downing of a Malaysian airliner in eastern Ukraine late last week, while Israel’s ground offensive in Gaza also remained in focus.
(COZ forex UK)
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