Forex - GBP/USD erases gains after disappointing U.K. data
Investing.com
Published Jun 30, 2011 04:36AM ET
GBP/USD retreated from 1.6118, the pair’s highest since June 22, to hit 1.6006 during European morning trade, shedding 0.35%.
Cable was likely to find support at 1.5910, Tuesday’s low and a five-month low and resistance at 1.6262, the high of June 22.
Earlier in the day, U.K. mortgage lender Nationwide said its house price index was flat in June, after rising by 0.3% in May and was 1.1% lower on the year.
A separate report showed that U.K. consumer confidence fell more-than-expected in June.
The GfK NOP Consumer Confidence Barometer slipped 4 points to minus 25 in June, surpassing expectations for a decline to minus 23.
All five measures of the index declined, with confidence in the economic outlook for the next year dropping 3 points to minus 18.
The pound has weakened broadly amid speculation that the BoE may resort to further quantitative easing after the minutes of the bank’s June meeting showed that some policymakers believed the growth outlook had weakened.
On Tuesday, BoE Governor Mervyn King said more monetary easing could be viewed as too much of an "easy option" to tackle slow growth, but he also played down the prospect of imminent rate rises.
The pound was also lower against the euro, with EUR/GBP surging 0.70% to hit 0.9051.
Later Thursday, the U.S. was to publish its weekly government report on initial jobless claims, as well as data on manufacturing activity in the Chicago region.
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.