Forex - GBP/USD rises as sentiment slightly improves, eyes on U.K. data
Published Sep 21, 2012 03:21AM ET
GBP/USD hit 1.6267 during European morning trade, the daily high; the pair subsequently consolidated at 1.6254, rising 0.25%.
Cable was likely to find support at 1.6164, Thursday's low and resistance at 1.6274, the high of September 17 and a four-and-a-half month high.
Market sentiment was hit on Thursday, after a flurry of downbeat data sparked fresh concerns over the outlook for global economic growth.
In the euro zone, preliminary data showed that manufacturing activity improved more-than-expected in September but remained in contraction territory, while service sector activity fell unexpectedly.
The pound found some support however, after official data on Thursday showed that U.K. retail sales fell by a seasonally adjusted 0.2% in August, compared to expectations for a 0.4% decline.
Meanwhile, negotiators discussing Greece's bailout came closer to an agreement in late night talks on Thursday but were still short of a final deal that would unlock the next instalment of Greece's EUR31.5 billion bailout package.
Separately, markets were jittery amid growing speculation that Spain will eventually apply for aid and trigger the European Central Bank's bond-buying programme aimed at lowering the borrowing costs of indebted euro zone states.
Elsewhere, the pound was fractionally higher against the euro with EUR/GBP easing 0.07%, to hit 0.7992.
Later in the day, the U.K. was to publish official data on public sector borrowing.
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Written By: Investing.com
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