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Forex - GBP/USD falls to 1-month lows despite U.K. data

Published 11/06/2015, 04:39 AM
Pound trades at 1-month trough vs. broadly stronger dollar
GBP/USD
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EUR/GBP
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Investing.com - The pound fell to one-month lows against the U.S. dollar on Friday, despite the release of upbeat U.K. economic reports as demand for the greenback remained broadly supported ahead of highly-anticipated U.S. jobs data due later in the day.

GBP/USD hit 1.5164 during European morning trade, the pair's lowest since October 6; the pair subsequently consolidated at 1.5164, shedding 0.30%.

Cable was likely to find support at 1.5137, the low of October 6 and resistance at 1.5247, the high of October 6.

The U.K. Office for National Statistics reported on Friday that manufacturing production rose 0.8% in September, beating expectations for a 0.4% gain. Manufacturing production increased 0.4% in August, whose figure was revised from a previously estimated 0.5% rise.

The report also showed that U.K. industrial production fell 0.2% in September, compared to expectations for a 0.1% downtick, after an increase of 0.9% the previous month.

Another report showed that the U.K. trade deficit narrowed to £9.35 billion in September from £10.79 billion in August, whose figure was revised from a previously estimated deficit of £11.15 billion. Analysts had expected the trade deficit to narrow to £10.60 billion in September.

Meanwhile, the dollar remained supported after Fed Chair Janet Yellen said on Wednesday that a December rate hike is a "live possibility," depending on the data.

Investors were turning their attention to Friday's U.S. nonfarm payrolls report for further indications on the strength of the job market.

Sterling was also lower against the euro, with EUR/GBP adding 0.18% to 0.7169.

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