Investing.com - The pound erased losses against the U.S. dollar on Friday, as sentiment mildly improved after positive U.S. data, although recent news the Federal Reserve will begin scaling back its stimulus program continued to support demand for the greenback.
GBP/USD pulled away from 1.6316, the pair's lowest since Wednesday, to hit 1.6383 during U.S. morning trade, eding up 0.06%.
Cable was likely to find support at 1.6220, the low of December 17 and resistance at 1.6485, the high of December 18.
Market sentiment found some support after official data showed that U.S. gross domestic product expanded by 4.1% in the third quarter, above initial estimates for 3.6% growth.
But the dollar remained supported after the Fed announced Wednesday that it would reduce its USD85 billion-a-month bond buying program by USD10 billion in January. Outgoing Fed Chairman Ben Bernanke said the economy was continuing to make progress.
The U.S. central bank reiterated that interest rates are likely to remain low even after the unemployment rate drops below 6.5%, the threshold at which the Fed has previously said it would start to consider rate increases.
Earlier in the day, 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 had expected 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.
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.
Sterling was lower against the euro, with EUR/GBP adding 0.16% to 0.8356.
In the euro zone, data earlier showed that the Gfk German consumer climate index rose to 7.6 in December, the highest level since August 2007, from a reading of 7.4 the previous month. Analysts had expected the index to remain unchanged this month.
A separate report showed that German producer price inflation fell 0.1% in November, in line woth expectations, after a 0.2% decline the previous month.
GBP/USD pulled away from 1.6316, the pair's lowest since Wednesday, to hit 1.6383 during U.S. morning trade, eding up 0.06%.
Cable was likely to find support at 1.6220, the low of December 17 and resistance at 1.6485, the high of December 18.
Market sentiment found some support after official data showed that U.S. gross domestic product expanded by 4.1% in the third quarter, above initial estimates for 3.6% growth.
But the dollar remained supported after the Fed announced Wednesday that it would reduce its USD85 billion-a-month bond buying program by USD10 billion in January. Outgoing Fed Chairman Ben Bernanke said the economy was continuing to make progress.
The U.S. central bank reiterated that interest rates are likely to remain low even after the unemployment rate drops below 6.5%, the threshold at which the Fed has previously said it would start to consider rate increases.
Earlier in the day, 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 had expected 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.
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.
Sterling was lower against the euro, with EUR/GBP adding 0.16% to 0.8356.
In the euro zone, data earlier showed that the Gfk German consumer climate index rose to 7.6 in December, the highest level since August 2007, from a reading of 7.4 the previous month. Analysts had expected the index to remain unchanged this month.
A separate report showed that German producer price inflation fell 0.1% in November, in line woth expectations, after a 0.2% decline the previous month.