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Forex - GBP/USD eases off 1-week lows after upbeat U.K. data

Published 10/21/2015, 04:37 AM
Pound trims losses vs. dollar on U.K. public sector borrowing report
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Investing.com - The pound trimmed losses against the U.S. dollar on Wednesday, easing off a one-week trough after the release of upbeat U.K. data, although demand for the greenback remained mildly supported by the previous session's U.S. housing data.

GBP/USD eased off 1.5415, the pair's lowest since October 15, to hit 1.5446, steady for the day.

Cable was likely to find support at 1.5338, the low of September 22 and resistance at 1.5505, Tuesday's high.

The U.K. Office for National Statistics reported that public sector net borrowing fell to £8.63 billion in September from £10.79 billion in August, whose figure was revised from a previously estimated £11.31 billion.

Analysts had expected public sector net borrowing to decline to £9.40 billion last month.

Meanwhile, the dollar remained supported after the U.S. Commerce Department reported on Tuesday that housing starts rose 6.5% to 1.206 million units last month from August’s total of 1.132 million units. Analysts had expected a figure of 1.140 million.

However, the report also showed that the number of building permits issued dropped by 5.0% to 1.103 million units from August’s total of 1.170 million. Analysts expected building permits to fall by 0.9% to 1.164 million units in July.

Sterling was lower against the euro, with EUR/GBP edging up 0.18% to 0.7358.

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