Investing.com – The pound extended losses against the U.S. dollar on Monday, falling to hit a fresh daily low, following the release of a flurry of mixed U.S. economic data.
GBP/USD hit 1.5836 during European afternoon trade, the pair’s lowest since October 13; the pair subsequently consolidated at 1.5893, shedding 0.59%.
Cable was likely to find support at 1.5773, the low of October 13 and resistance at 1.6104, last Friday’s high and a 10-month high.
Earlier in the day, official data showed industrial production in the U.S. fell unexpectedly in September, the first drop after six months of gains.
In a report, the U.S. Federal Reserve said that industrial production declined by a seasonally adjusted 0.2% in September, after rising by 0.2% in August. Analysts had expected industrial production to rise by 0.2% in September.
The report said that the capacity utilization rate remained unchanged at a seasonally adjusted 74.7% in September. The capacity utilization rate had been expected to rise to 74.8% in September.
Meanwhile, a separate report showed that U.S. Treasury International Capital purchases rose unexpectedly in August.
The pound was also down against the euro, with EUR/GBP gaining 0.08% to hit 0.8736.
Earlier in the day, former BOE policymaker David Blanchflower warned that the U.K. economy was in "desperate danger" of slipping back into recession and called the government's planned spending cuts the "greatest macro-economic mistake in a century".
GBP/USD hit 1.5836 during European afternoon trade, the pair’s lowest since October 13; the pair subsequently consolidated at 1.5893, shedding 0.59%.
Cable was likely to find support at 1.5773, the low of October 13 and resistance at 1.6104, last Friday’s high and a 10-month high.
Earlier in the day, official data showed industrial production in the U.S. fell unexpectedly in September, the first drop after six months of gains.
In a report, the U.S. Federal Reserve said that industrial production declined by a seasonally adjusted 0.2% in September, after rising by 0.2% in August. Analysts had expected industrial production to rise by 0.2% in September.
The report said that the capacity utilization rate remained unchanged at a seasonally adjusted 74.7% in September. The capacity utilization rate had been expected to rise to 74.8% in September.
Meanwhile, a separate report showed that U.S. Treasury International Capital purchases rose unexpectedly in August.
The pound was also down against the euro, with EUR/GBP gaining 0.08% to hit 0.8736.
Earlier in the day, former BOE policymaker David Blanchflower warned that the U.K. economy was in "desperate danger" of slipping back into recession and called the government's planned spending cuts the "greatest macro-economic mistake in a century".