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Forex - GBP/USD extends losses after U.S. economic data

Published 12/15/2010, 10:50 AM
GBP/USD
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EUR/GBP
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Investing.com – The pound extended losses against the U.S. dollar on Wednesday, tumbling to a fresh 8-day low following the release of U.S. data on consumer prices and industrial production.

GBP/USD hit 1.5616 during European afternoon trade, the pair’s lowest since December 3; the pair subsequently consolidated at 1.5638, tumbling 0.85%.

Cable was likely to find support at 1.5580, the low of December 3 and resistance at 1.5822, the high of December 7.

Earlier in the day, the Bureau of Labor Statistics said that core consumer prices, less food and energy rose in line with expectations in November, increasing by 0.10%, up from a flat reading in October.

Consumer prices, including food and energy costs rose less-than-expected in November, increasing by a seasonally adjusted 0.1%. Analysts had expected consumer price inflation to rise by 0.2% in November.

Year-on-year, consumer prices rose by 1.1% in November, after rising by 1.2% in October.

A separate report showed that industrial production in the U.S. rose more-than-expected in November, climbing 0.4%, slightly above expectations for a 0.3% increase.

The pound was also down against the euro, with EUR/GBP surging 0.67% to hit 0.8535.

Also Wednesday, official data showed that the number of people claiming unemployment benefits in the U.K. fell less-than-expected in November, while the unemployment rate rose unexpectedly in the third quarter.

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