Investing.com - The pound fell to fresh 15-month lows against the U.S. dollar on Tuesday, after a batch of mixed economic reports from the U.K. and as expectations for a U.S. rate hike next year continued to support demand for the greenback.
Trading volumes were expected to remain light this week with many investors away for the Christmas holiday and ahead of the New Year's holiday.
GBP/USD hit 1.5552 during European morning trade, the pair's lowest since September 2013; the pair subsequently consolidated at 1.5564, slipping 0.16%.
Cable was likely to find support at 1.5504 and resistance at 1.5667, Monday's high.
In a report, the Office for National Statistics said the U.K. current account deficit widened to £27.0 billion in the third quarter from £24.3 billion in the second quarter, whose figure was revised from a previously estimated deficit of £23.1 billion.
Analysts had expected the current account deficit to narrow to £21.9 billion in the last quarter.
A separate report showed that U.K. gross domestic product rose 0.7% in the third quarter, in line with expectations and down from a 0.8% growth rate in the three months to June.
Year-on-year, the U.K. economy grew at a rate of 3.6% in the last quarter, above expectations for growth of 3.0% and unchanged from the second quarter's revised rate, which had initially been estimated at 3.0%.
In addition, the British Bankers' Association reported that mortgage approvals rose by £36,700 in November, after an increase of £37,200 in October, whose figure was revised from a previously estimated £37,100 gain.
Analysts had expected mortgage approvals to rise by £37,100 last month.
Meanwhile, the dollar remained broadly supported after the Federal Reserve signaled last week that it was on track to raise interest rates next year but said it was taking a patient stance.
The central bank also acknowledged the improvement in the U.S. labor market and noted that the economy is making progress toward its goals in inflation and employment.
Sterling was also lower against the euro, with EUR/GBP adding 0.24% to 0.7863.
Also Tuesday, official data showed that French consumer spending rose 0.4% in November, beating expectations for a 0.3% gain. French consumer spending fell 0.8% in October, whose figure was revised from a previously estimated 0.9% decline.
Another report showed that France's economy grew by 0.3% in the third quarter, in line with expectations and unchanged from the previous quarter's growth rate.
Later in the day, the U.S. was to release final third-quarter GDP data, as well as on core durable goods orders and new home sales.