Forex - GBP/USD holds steady after weak U.K. data

Published 11/15/2012, 04:49 AM
Updated 11/15/2012, 04:50 AM
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Investing.com - The pound held steady against the U.S. dollar on Thursday, hovering close to a more than two-month low after the release of disappointing U.K. retail sales data, as investors eyed a report on economic growth from the euro zone, later in the day.

GBP/USD hit 1.5856 during European morning trade, the session high; the pair subsequently consolidated at 1.5853, inching up 0.07%.

Cable was likely to find support at 1.5778, the low of August 31 and resistance at 1.5915, the high of November 12.

Official data showed that U.K. retail sales fell more-than-expected in October, ticking down 0.08% after a 0.5% rise the previous month.

Analysts had expected retail sales to fall by 0.1% in October.

Meanwhile, markets were jittery after official data showed that the pace of Germany's economic growth slowed to 0.2% in the third quarter, following a 0.3% increase in the previous quarter.

Investors were also concerned over the looming “fiscal cliff” in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.

There are fears the U.S. economy will fall back into a recession, unless a divided Congress and the White House can work out a compromise before then.

Sterling was lower agains the euro with EUR/GBP adding 0.18%, to hit 0.8054.

Later in the day, the U.S. was to release reports on initial jobless claims, consumer price inflation, crude oil stockpiles, in addition to data on manufacturing activity in New York and Philadelphia.

Meanwhile, a speech by Federal Reserve Chairman Ben Bernanke was to be closely watched for any indications on the future possible direction of monetary policy.


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