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Forex - GBP/USD holds steady after U.K. public sector borrowing data

Published 03/20/2015, 05:36 AM
© Reuters.  Pound little changed against dollar after positive U.K. data
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Investing.com - The pound held steady against the U.S. dollar on Friday, after positive U.K. public sector borrowing data, while sentiment on the greenback remained vulnerable after the Federal Reserve's latest policy statement.

GBP/USD hit 1.4723 during European morning trade, the session low; the pair subsequently consolidated at 1.4749.

Cable was likely to find support at 1.4631, the low of March 18 and a nearly five-year low and resistance at 1.4853, the high of March 16.

In a report, the U.K. Office for National Statistics said that public sector net borrowing rose by £6.22 billion in February, less than the expected increase of £7.70 billion. January's figure was revised to a £8.93 billion drop from a previously estimated decline of £9.41 billion.

Meanwhile, the dollar remained fragile after the Fed indicated on Wednesday that U.S. economic growth has moderated and that interest rates will rise at a slower pace than previously forecast.

In a statement following its monetary policy meeting, the U.S. central bank also downgraded its forecasts for growth and inflation.

The Fed dropped a reference to being "patient" on the timing of rate hikes, but added that the change in its forward guidance did not mean it has decided on the timing for an initial rate increase.

Sterling was lower against the euro, with EUR/GBP rising 0.29% to 0.7245.

The euro found some support after European Union leaders said that Greece has agreed to establish a new reform plan in the coming days to secure the additional bailout funds required to prevent the country's bankruptcy.

Ahead of the talks, European Parliament President Martin Schulz had warned that Greece’s financial situation was "dangerous", with debt payments looming.

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