Investing.com – The euro rebounded from a seven-week low against the pound on Thursday, after official data showed that U.K. industrial output rose less-than-expected in March, dampening hopes for an upward revision to overall first-quarter growth.
EUR/GBP rebounded from 0.8674, the pair’s lowest since March 23, to hit 0.8720 during European morning trade, climbing 0.41%.
The pair was likely to find support at 0.8662, the low of March 23 and resistance at 0.8810, Wednesday’s high.
The Office for National Statistics said that industrial output rose 0.3% in March after dropping by 1.2% in February, disappointing expectations for a 0.9% increase.
Manufacturing output, which excludes utilities and oil and gas extraction, also rose less-than-expected in March, up by 0.2%, after a flat reading in February.
The statistics office said the figures meant growth in the sector came in at just 0.2% in the first quarter, compared with an estimate of 0.4% in the preliminary reading of gross domestic product.
The pound was also lower against the U.S. dollar, with GBP/USD shedding 0.37% to hit 1.6284.
The pound rallied on Wednesday, after the Bank of England raised its inflation forecasts, prompting markets to bring forward the possible timing of an interest rate hike.
But the bank also downgraded its near-term outlook for growth since its last report in February, saying that first-quarter growth had been slower than expected.
EUR/GBP rebounded from 0.8674, the pair’s lowest since March 23, to hit 0.8720 during European morning trade, climbing 0.41%.
The pair was likely to find support at 0.8662, the low of March 23 and resistance at 0.8810, Wednesday’s high.
The Office for National Statistics said that industrial output rose 0.3% in March after dropping by 1.2% in February, disappointing expectations for a 0.9% increase.
Manufacturing output, which excludes utilities and oil and gas extraction, also rose less-than-expected in March, up by 0.2%, after a flat reading in February.
The statistics office said the figures meant growth in the sector came in at just 0.2% in the first quarter, compared with an estimate of 0.4% in the preliminary reading of gross domestic product.
The pound was also lower against the U.S. dollar, with GBP/USD shedding 0.37% to hit 1.6284.
The pound rallied on Wednesday, after the Bank of England raised its inflation forecasts, prompting markets to bring forward the possible timing of an interest rate hike.
But the bank also downgraded its near-term outlook for growth since its last report in February, saying that first-quarter growth had been slower than expected.