Investing.com - The pound edged lower against the U.S. dollar on Friday, as market sentiment weakened amid U.S. and euro zone growth concerns, while markets eyed highly anticipated U.S. budget talks later in the day.
GBP/USD hit 1.5837 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.5849, edging down 0.10%.
Cable was likely to find support at 1.5778, the low of August 31 and resistance at 1.5916, the high of November 13.
Concerns over the strength of the U.S. economic recovery re-emerged after official data showed that U.S. industrial production fell unexpectedly in October, ticking down 0.4% after a 0.2% rise the previous month. Analysts had expected industrial production to rise 0.2% in October.
A separate report showed that the U.S. capacity utilization rate declined to 77.8% in October from 78.2% the previous month, disappointing expectations for an increase to 78.3%.
Investors were also cautious ahead of highly anticipated talks between U.S. President Barack Obama and Republican lawmakers on how to resolve the country’s "fiscal cliff" later in the day.
Approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.
Meanwhile, worries over the worsening of the euro zone's debt crisis persisted after the European Central Bank said in a report that the euro zone's current account surplus narrowed more-than-expected in August, declining to EUR0.8 billion from an upwardly revised EUR10.9 billion the previous month.
Analysts had expected the current account surplus to narrow to EUR9.2 billion in August.
Elsewhere, sterling was higher against the euro with EUR/GBP shedding 0.47%, to hit 0.8016.
Also Friday, official data showed that the euro zone's trade surplus expanded to EUR11.3 billion in September, more than the expected rise to EUR10.6 billion, from a surplus of EUR9.9 billion the previous month.
GBP/USD hit 1.5837 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.5849, edging down 0.10%.
Cable was likely to find support at 1.5778, the low of August 31 and resistance at 1.5916, the high of November 13.
Concerns over the strength of the U.S. economic recovery re-emerged after official data showed that U.S. industrial production fell unexpectedly in October, ticking down 0.4% after a 0.2% rise the previous month. Analysts had expected industrial production to rise 0.2% in October.
A separate report showed that the U.S. capacity utilization rate declined to 77.8% in October from 78.2% the previous month, disappointing expectations for an increase to 78.3%.
Investors were also cautious ahead of highly anticipated talks between U.S. President Barack Obama and Republican lawmakers on how to resolve the country’s "fiscal cliff" later in the day.
Approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.
Meanwhile, worries over the worsening of the euro zone's debt crisis persisted after the European Central Bank said in a report that the euro zone's current account surplus narrowed more-than-expected in August, declining to EUR0.8 billion from an upwardly revised EUR10.9 billion the previous month.
Analysts had expected the current account surplus to narrow to EUR9.2 billion in August.
Elsewhere, sterling was higher against the euro with EUR/GBP shedding 0.47%, to hit 0.8016.
Also Friday, official data showed that the euro zone's trade surplus expanded to EUR11.3 billion in September, more than the expected rise to EUR10.6 billion, from a surplus of EUR9.9 billion the previous month.