NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

Forex - GBP/USD drops on strong U.S. consumer sentiment data

Published 08/17/2012, 02:25 PM
Updated 08/17/2012, 02:26 PM
GBP/USD
-
EUR/GBP
-
GBP/JPY
-
Investing.com - The pound on Friday weakened against the dollar on news that consumer sentiment in the U.S. came in stronger than expected this month.
 
In U.S. trading on Friday, GBP/USD hit 1.5690, down 0.28%, up from a session low of 1.5675 and off from a high of 1.5739.

The pair was likely to find support at 1.5675, the earlier low, and resistance at 1.5739, the earlier high.

The dollar firmed against most major currencies on news that U.S. consumers have more faith in their economy.

A Thomson Reuters/University of Michigan preliminary consumer sentiment index for August hit its highest level since May at 73.6, up from 72.3 last month, outpacing economists' forecasts for a 72.4 reading.

The numbers fueled sentiments that despite headwinds from Europe and despite stubbornly high unemployment rates, the U.S. economy will continue to grow and put less pressure on the Federal Reserve to stimulate the economy, which would otherwise weaken the dollar.

Profit-taking sent the pair falling as well.

The pound strengthened against the greenback earlier this week on news U.K. retail sales came in stronger than expected.

The U.K. Office for National Statistics reported that retail sales increased by 0.3 percent in July, outpacing analysts' calls for a 0.1 percent decline.

June’s numbers were revised from 0.1 to 0.8 percent, fueling sentiment the U.K. economy may be improving,

The pound, meanwhile, was up against the euro and down against the yen, with EUR/GBP trading down 0.03% at 0.7852 and GBP/JPY down 0.02% at 124.80.








Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.