Investing.com – The pound trimmed gains against the U.S. dollar on Tuesday, after official data showed that while the U.K. economy shrank less-than-expected in the fourth quarter, the new figure was still the biggest decline since the second quarter of 2009.
GBP/USD retreated from 1.6043, the daily high, to hit 1.6014 during European morning trade, easing up 0.14%.
Cable was likely to find support at 1.5936, Monday’s low and a two-month low and resistance at 1.6141, last Friday’s high.
The Office for National Statistics said gross domestic product fell 0.5% from the previous three months, compared with an earlier estimate of 0.6%. Excluding the impact of the coldest December in a century, growth was “broadly flat,” the statistics office said.
The annual rate of growth was unrevised at 1.5%. Economists had expected both rates to remain unrevised at -0.6% and 1.5% respectively.
A separate report showed that the U.K. current account deficit widened to GBP10.5 billion from GBP 8.7 billion pounds in the previous three months.
Meanwhile, the pound was down against the euro, with EUR/GBP easing up 0.08% to hit 0.8814.
Also Tuesday, the Bank of England said U.K. mortgage approvals rose broadly in line with expectations to hit 46,967 in February. The figure compares with an upwardly revised 46,152 in January.
GBP/USD retreated from 1.6043, the daily high, to hit 1.6014 during European morning trade, easing up 0.14%.
Cable was likely to find support at 1.5936, Monday’s low and a two-month low and resistance at 1.6141, last Friday’s high.
The Office for National Statistics said gross domestic product fell 0.5% from the previous three months, compared with an earlier estimate of 0.6%. Excluding the impact of the coldest December in a century, growth was “broadly flat,” the statistics office said.
The annual rate of growth was unrevised at 1.5%. Economists had expected both rates to remain unrevised at -0.6% and 1.5% respectively.
A separate report showed that the U.K. current account deficit widened to GBP10.5 billion from GBP 8.7 billion pounds in the previous three months.
Meanwhile, the pound was down against the euro, with EUR/GBP easing up 0.08% to hit 0.8814.
Also Tuesday, the Bank of England said U.K. mortgage approvals rose broadly in line with expectations to hit 46,967 in February. The figure compares with an upwardly revised 46,152 in January.