Investing.com - The pound extended losses against the U.S. dollar on Wednesday, falling to a fresh two-day low after U.S. government data showed that new orders for long lasting manufactured goods rose less-than-expected in February.
GBP/USD hit 1.5882 during European afternoon trade, the pair’s lowest since Monday; the pair subsequently consolidated at 1.5880, shedding 0.40%.
Cable was likely to find support at 1.5800, Monday’s low and resistance at 1.5963, the session high.
The Commerce Department said durable goods orders rose 2.2% in February, partially reversing January's revised 3.6% decline, but fell short of expectations for a 3.0% increase.
Core durable goods orders, which exclude transportation, rose by a seasonally adjusted 1.6% in February, compared to expectations for a 1.5% gain.
The pound came under broad selling pressure earlier after official data showed that the U.K. economy contracted more than initially estimated in the final three months of 2011.
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 annual decline since 1977.
The report came one day after 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, with EUR/GBP adding 0.40% to hit 0.8380.
On Tuesday, Federal Reserve Chairman Ben Bernanke said that it was still too early to declare victory in the U.S. economic recovery and added that the unemployment rate is still far too high.
GBP/USD hit 1.5882 during European afternoon trade, the pair’s lowest since Monday; the pair subsequently consolidated at 1.5880, shedding 0.40%.
Cable was likely to find support at 1.5800, Monday’s low and resistance at 1.5963, the session high.
The Commerce Department said durable goods orders rose 2.2% in February, partially reversing January's revised 3.6% decline, but fell short of expectations for a 3.0% increase.
Core durable goods orders, which exclude transportation, rose by a seasonally adjusted 1.6% in February, compared to expectations for a 1.5% gain.
The pound came under broad selling pressure earlier after official data showed that the U.K. economy contracted more than initially estimated in the final three months of 2011.
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 annual decline since 1977.
The report came one day after 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, with EUR/GBP adding 0.40% to hit 0.8380.
On Tuesday, Federal Reserve Chairman Ben Bernanke said that it was still too early to declare victory in the U.S. economic recovery and added that the unemployment rate is still far too high.