Investing.com - The pound extended losses against the U.S. dollar in thin trade on Friday, as investors continued to lock in profits following sterling's rally to nine-mont highs on Thursday, although demand for the greenback remained limited by ongoing U.S. budget concerns.
GBP/USD hit 1.6034 during U.S. morning trade, the pair's lowest since September 27; the pair subsequently consolidated at 1.6062, retreating 0.58%.
Cable was likely to find support at 1.5956, the low of September 24 and resistance at 1.6178.
The dollar remained under pressure as investors continued to weigh the implications of a protracted U.S. government shutdown.
On Thursday, disappointing U.S. service sector data added to concerns that the shutdown in Washington could have wider consequences on the U.S. economy.
The Institute of Supply Management said its non-manufacturing purchasing manager's index fell to a three-month low of 54.4 in September from a reading of 58.6 in August. Analysts had expected the index to decline to 57.4 last month.
The U.S. Labor Department on Thursday said the employment report for September will not be released as scheduled on Friday due to the government shutdown. It said a new release date had not been set.
Markets were also considering how the U.S. political deadlock will impact negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by October 17.
Speaking overnight, International Monetary Fund head Christine Lagarde said the failure to raise the U.S. debt ceiling could hurt the global economy and warned U.S. growth could drop below 2% this year.
Separately, Standard & Poor's rating agency said the standoff over funding the government and increasing the borrowing limit is "unlikely to change" S&P's AA plus rating on U.S. debt.
Sterling was also lower against the euro with EUR/GBP rising 0.35%, to hit 0.8459.
In the euro zone, official data showed that German producer price inflation fell 0.1% in August, confounding expectations for a 0.1% rise, after a 0.1% slip the previous month.
GBP/USD hit 1.6034 during U.S. morning trade, the pair's lowest since September 27; the pair subsequently consolidated at 1.6062, retreating 0.58%.
Cable was likely to find support at 1.5956, the low of September 24 and resistance at 1.6178.
The dollar remained under pressure as investors continued to weigh the implications of a protracted U.S. government shutdown.
On Thursday, disappointing U.S. service sector data added to concerns that the shutdown in Washington could have wider consequences on the U.S. economy.
The Institute of Supply Management said its non-manufacturing purchasing manager's index fell to a three-month low of 54.4 in September from a reading of 58.6 in August. Analysts had expected the index to decline to 57.4 last month.
The U.S. Labor Department on Thursday said the employment report for September will not be released as scheduled on Friday due to the government shutdown. It said a new release date had not been set.
Markets were also considering how the U.S. political deadlock will impact negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by October 17.
Speaking overnight, International Monetary Fund head Christine Lagarde said the failure to raise the U.S. debt ceiling could hurt the global economy and warned U.S. growth could drop below 2% this year.
Separately, Standard & Poor's rating agency said the standoff over funding the government and increasing the borrowing limit is "unlikely to change" S&P's AA plus rating on U.S. debt.
Sterling was also lower against the euro with EUR/GBP rising 0.35%, to hit 0.8459.
In the euro zone, official data showed that German producer price inflation fell 0.1% in August, confounding expectations for a 0.1% rise, after a 0.1% slip the previous month.