Investing.com - The pound extended losses against the U.S. dollar on Wednesday, falling to a fresh two-day low after official data showed that the U.K. economy contracted more-than-initially estimated in the final three months of 2011.
GBP/USD hit 1.5904 during European morning trade, the pair’s lowest since Monday; the pair subsequently consolidated at 1.5910, shedding 0.24%.
Cable was likely to find support at 1.5800, Monday’s low and resistance at 1.5963, the session high.
The U.K. Office for National Statistics said gross domestic product contracted at a seasonally adjusted rate of 0.3% during the fourth quarter, more than the preliminary estimate of a 0.2% contraction.
Annualized GDP rose at a rate of 0.5%, below expectations for growth of 0.7%.
The report said that household incomes in the U.K. fell by 1.2% in 2011,
the largest decline since 1977.
On Tuesday, Bank of England Governor Mervyn King said that the U.K. economy still faced a long road to pre-fiscal crisis growth rates, but stopped short of indicating if the central bank is considering a fresh round of monetary easing.
The pound was also lower against the euro and the yen, with EUR/GBP rising 0.52% to hit 0.8391 and GBP/JPY shedding 0.58% to hit 131.88.
Later in the day, the U.S. was to produce official data on durable goods orders, as well as data on crude oil stockpiles.
GBP/USD hit 1.5904 during European morning trade, the pair’s lowest since Monday; the pair subsequently consolidated at 1.5910, shedding 0.24%.
Cable was likely to find support at 1.5800, Monday’s low and resistance at 1.5963, the session high.
The U.K. Office for National Statistics said gross domestic product contracted at a seasonally adjusted rate of 0.3% during the fourth quarter, more than the preliminary estimate of a 0.2% contraction.
Annualized GDP rose at a rate of 0.5%, below expectations for growth of 0.7%.
The report said that household incomes in the U.K. fell by 1.2% in 2011,
the largest decline since 1977.
On Tuesday, Bank of England Governor Mervyn King said that the U.K. economy still faced a long road to pre-fiscal crisis growth rates, but stopped short of indicating if the central bank is considering a fresh round of monetary easing.
The pound was also lower against the euro and the yen, with EUR/GBP rising 0.52% to hit 0.8391 and GBP/JPY shedding 0.58% to hit 131.88.
Later in the day, the U.S. was to produce official data on durable goods orders, as well as data on crude oil stockpiles.