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Forex - GBP/USD dips on solid U.S. economic growth report

Published 12/20/2013, 03:08 PM
Updated 12/20/2013, 03:09 PM
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Investing.com - The pound moved lower against the dollar on Friday after data revealed the U.S. economy expanded faster than expected in the third quarter, though similarly healthy data out of the U.K. curbed the pair's losses.

In U.S. trading on Thursday, GBP/USD was trading at 1.6335, down 0.24%, up from a session low of 1.6316 and off from a high of 1.6395.
 
Cable was likely to find support at 1.6220, Tuesday's low, and resistance at 1.6485, Wednesday's high.

The Commerce Department reported earlier that the U.S. gross domestic product expanded by 4.1% in the third quarter, well above consensus forecasts for 3.6% growth, which boosted the dollar against the pound.

Across the Atlantic, official data showed that the U.K. current-account deficit widened to GBP20.7 billion in the third quarter from GBP6.2 billion in the three months to June. Analysts were expecting the current account deficit to widen to GBP13.9 billion in the last quarter.

A separate report showed that the U.K. gross domestic product expanded by 0.8% in the third quarter, in line with previous estimates, which gave the pound some support.

Official data also showed that public sector net borrowing in the U.K. rose by GBP14.8 billion in November, exceeding expectations for a GBP13.4 billion rise, after a downwardly revised GBP7.4 billion increase in October.

The pound, meanwhile, was down against the euro and down against the yen, with EUR/GBP up 0.33% at 0.8370 and GBP/JPY down 0.44% at 169.94.










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