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Forex - GBP/USD hits fresh daily low, extending losses

Published 06/02/2010, 11:19 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, in the wake of better-than-expected data on the U.S. housing market.

GBP/USD fell to 1.4564 during European afternoon trade, the new daily low; cable subsequently consolidated around 1.4581, shedding 0.46%.

The pair was likely to find resistance at 1.5054, the high of May 10, and support at 1.4229, the low of May 20 and a 14-month low.

Earlier in the day, industry data showed that pending sales of previously owned homes in the United States rose for the third straight month in April and at a faster pace than economists forecast.

Sterling was also down against the euro meanwhile, with EUR/GBP climbing 0.22% to hit 0.8368.

Also Wednesday, official data showed that industrial producer prices in the euro zone rose faster than expected in April.

In a report, Eurostat, the statistical office of the European Union, said its producer price index rose to 0.9% in April, after an increase of 0.6% in March. Economists had expected a more modest increase of 0.7% in April.


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