Forex - GBP/USD dips on upbeat U.S. industrial output report
Published Dec 15, 2014 12:02PM ET
Dollar firms on robust U.S. industrial production data
Investing.com - The pound softened against a firming dollar on Monday after a widely-watched gauge of U.S. industrial production to beat expectations.
In U.S. trading on Monday, GBP/USD was down 0.37% at 1.5658, up from a session low of 1.5601 and off a high of 1.5747.
Cable was likely to find support at 1.5539, last Monday's low, and resistance at 1.5756, Thursday's high.
The Federal Reserve reported earlier that U.S. industrial production rose by 1.3% in November, beating expectations for a gain of 0.7%.
Industrial production for October was revised up to 0.1% from a previously reported decline of 0.1%.
The report added that the capacity utilization rate, a measure of how full firms are using their resources, rose to 80.1% last month from an upwardly revised 79.3% in October, beating market calls for an unchanged reading.
The data boosted demand for the dollar on expectations that the Federal Reserve will tighten policy next year.
The pound, meanwhile, continued to come under pressure from disappointing U.K. construction data released on Friday.
The U.K. Office for National Statistics reported that construction output declined 2.2% in October, disappointing expectations for a 0.8% rise.
Construction output rose 2.2% in September, whose figure was revised from a previously estimated 1.8% gain.
Elsewhere, sterling was down against the euro, with EUR/GBP up 0.48% at 0.7967, and down against the yen, with GBP/JPY down 1.32% at 184.21.
On Tuesday in the U.K., the Bank of England is to publish its financial stability report. BoE Governor Mark Carney is to hold a press conference about the report.
The U.K. is also to release data on consumer inflation, which accounts for the majority of overall inflation.
The U.S. is to publish reports on building permits and housing starts.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.