Investing.com – The pound extended gains against the U.S. dollar on Tuesday, advancing to a fresh six-week high after official data showed that the U.K. economy grew by 0.2% as expected in the second quarter.
GBP/USD hit 1.6413 during European afternoon trade, the pair’s highest since June 14; the pair subsequently consolidated at 1.6399, gaining 0.76%.
Cable was likely to find support at 1.6120, the low of June 21 and short-term resistance at 1.6440, the high of June 14.
The Office for National Statistics said gross domestic product grew by just 0.2% in the second quarter, after rising by 0.5% in the previous quarter, bringing the annualized rate of growth to 0.7%, the lowest since the first quarter of 2010.
The statistics office said that factors such as the additional public holiday for the Royal Wedding and the after-effects of the Japanese tsunami may have subtracted as much a 0.5% from overall growth in the second quarter.
The report said industrial output fell 1.4% on the quarter, while the service sector expanded by 0.5%.
The lackluster data was seen as lending support to expectations that the Bank of England will hold interest rates at record lows well into 2012.
Elsewhere, the greenback remained broadly lower as talks between U.S. President Barack Obama and congressional leaders on raising the U.S.’s USD14.3 trillion debt ceiling appeared to be making little progress.
The pound was fractionally higher against the euro, with EUR/GBP dipping 0.03% to hit 0.8831.
Later in the day, the U.S. was to publish government data on new home sales, as well as data on consumer confidence and house price inflation.
GBP/USD hit 1.6413 during European afternoon trade, the pair’s highest since June 14; the pair subsequently consolidated at 1.6399, gaining 0.76%.
Cable was likely to find support at 1.6120, the low of June 21 and short-term resistance at 1.6440, the high of June 14.
The Office for National Statistics said gross domestic product grew by just 0.2% in the second quarter, after rising by 0.5% in the previous quarter, bringing the annualized rate of growth to 0.7%, the lowest since the first quarter of 2010.
The statistics office said that factors such as the additional public holiday for the Royal Wedding and the after-effects of the Japanese tsunami may have subtracted as much a 0.5% from overall growth in the second quarter.
The report said industrial output fell 1.4% on the quarter, while the service sector expanded by 0.5%.
The lackluster data was seen as lending support to expectations that the Bank of England will hold interest rates at record lows well into 2012.
Elsewhere, the greenback remained broadly lower as talks between U.S. President Barack Obama and congressional leaders on raising the U.S.’s USD14.3 trillion debt ceiling appeared to be making little progress.
The pound was fractionally higher against the euro, with EUR/GBP dipping 0.03% to hit 0.8831.
Later in the day, the U.S. was to publish government data on new home sales, as well as data on consumer confidence and house price inflation.