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Forex - GBP/USD edges up near 9-month highs after U.K. GDP data

Published 10/25/2013, 05:25 AM
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Investing.com - The pound was edged up against the U.S. dollar on Friday, hovering close to more than nine-month highs after data showed that the U.K. economy grew in line with expectations in the three months to September.

GBP/USD hit 1.6247 during European morning trade, the pair's highest since October 23; the pair subsequently consolidated at 1.6216, adding 0.09%.

Cable was likely to find support at 1.6120, the low of October 23 and resistance at 1.6381, the high of January 2.

Preliminary data earlier showed that the U.K. gross domestic product rose 0.8% in the third quarter, in line with expectations and up from 0.7% in the previous quarter.

Meanwhile, the dollar remained under pressure after disappointing U.S. employment reports added to expectations that the Fed will delay tapering its stimulus program until next year amid concerns over the impact of the 16-day U.S. government shutdown on the economic recovery.

On Thursday, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits declined by 12,000 last week to a seasonally adjusted 350,000. Analysts had expected U.S. jobless claims to fall by 22,000 to 340,000 last week.

The report came after data earlier in the week showed that U.S. jobs growth slowed in September.

Sterling was steady against the euro with EUR/GBP inching up 0.01%, to hit 0.8519.

In the euro zone, the Ifo Institute for Economic Research said Germany's business climate index fell to 107.4 in October, from a reading of 107.7 the previous month, confounding expectations for a rise to 108.0.

Later in the day, the U.S. was to produce data on durable goods orders, as well as revised data on consumer sentiment from the University of Michigan.


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