Forex - GBP/USD edges lower after mixed U.K. data
Investing.com
Published Dec 20, 2013 04:47AM ET
Pound slips after mixed U.K. economic reports
GBP/USD hit 1.6319 during European morning trade, the pair's lowest since Wednesday; the pair subsequently consolidated at 1.6351, falling 0.13%.
Cable was likely to find support at 1.6220, the low of December 17 and resistance at 1.6485, the high of December 18.
Official data showed that the U.K. current account deficit widened to GBP20.7 billion in the third quarter, from GBP6.2 billion in the three months to June. Analysts had expected the current account deficit to widen to GBP13.9 billion in the last quarter.
A separate report showed that the U.K. gross domestic product expanded by 0.8% in the third quarter, in line with previous estimates.
Official data also showed that public sector net borrowing in the U.K. rose by GBP14.8 billion in November, exceeding expectations for a GBP13.4 billion rise, after a downwardly revised GBP7.4 billion increase in October.
Meanwhile, the dollar remained supported after the Fed announced Wednesday that it would reduce its USD85 billion-a-month bond buying program by USD10 billion in January. Outgoing Fed Chairman Ben Bernanke said the economy was continuing to make progress.
The U.S. central bank reiterated that interest rates are likely to remain low even after the unemployment rate drops below 6.5%, the threshold at which the Fed has previously said it would start to consider rate increases.
Sterling was little changed against the euro, with EUR/GBP dipping 0.01% to 0.8343.
In the euro zone, data earlier showed that the Gfk German consumer climate index rose to 7.6 in December, the highest level since August 2007, from a reading of 7.4 the previous month. Analysts had expected the index to remain unchanged this month.
A separate report showed that German producer price inflation fell 0.1% in November, in line woth expectations, after a 0.2% decline the previous month.
Later in the day, the U.S. was to release revised data on third quarter GDP.
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Written By: Investing.com
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