GBP/USD hit 1.4832 during European afternoon trade, the pair’s lowest since March 12; the pair subsequently consolidated at 1.4865, shedding 0.57%.
Cable is likely to find support at 1.4832, the session low and a four-month low and resistance at 1.4965, Monday’s high.
The Office for National Statistics said that U.K. manufacturing production fell 0.8% in May, compared to expectations for a 0.3% increase.
Manufacturing production fell at an annual rate of 2.9% in May, compared to expectations for a 1.6% decline.
The ONS said industrial production was flat in May, disappointing expectations for a 0.2% increase, and was 2.3% lower on a year-over-year basis.
A separate report showed that the U.K. trade deficit widened to GBP8.49 billion in May, from a deficit of GBP8.43 billion in April. Economists had forecast a deficit of GBP8.47 billion.
The data dampened expectations that the economic recovery is gaining momentum, after data last week showed that service sector activity in the U.K. expanded at the fastest pace since March 2011 in June, while manufacturing activity expanded at the fastest rate in more than two years.
Earlier Tuesday, private sector reports showed that U.K. house prices rose in June, and retail sales increased last month.
Last week the Bank of England indicated that interest rates are likely to remain at record low levels, given weakness in the U.K.’s economic recovery.
Meanwhile, demand for the dollar continued to be supported by expectations that the Federal Reserve will start to unwind its asset purchase program later this year.
Sterling was also trading at four-month lows against the euro, withEUR/GBP advancing 0.54% to 0.8652.
The euro found some support after Greece secured its next tranche of financial aid from creditors overnight.
However, sentiment on the single currency remained fragile after European Central Bank President Mario Draghi reiterated Monday that interest rates will remain at low levels for an extended period of time.
Posts
0 comments :
Post a Comment