🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

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

Published 11/20/2015, 04:41 AM
Pound little changed vs. greenback, even as U.K. data disappoints
GBP/USD
-
EUR/GBP
-

Investing.com - The pound held steady against the U.S. dollar on Friday, after data showed that U.K. public sector borrowing rose more than expected last month, while expectations for an upcoming U.S. rate hike continued to support the greenback.

GBP/USD hit 1.5228 during European morning trade, the session low; the pair subsequently consolidated at 1.5287.

Cable was likely to find support at 1.5184, the low of November 18 and resistance at 1.5335, Thursday's high and a two-week high.

The U.K. Office for National Statistics reported on Friday that public sector net borrowing rose by £7.47 billion in October after an increase of £8.33 billion in September, whose figure was revised from a previously estimated £8.63 billion rise.

Analysts had expected public sector net borrowing to increase by £5.50 billion last month.

Meanwhile, the dollar remained supported after the minutes of the Federal Reserve's October meeting showed on Wednesday that a majority of board members are in favor of a December rate hike.

"While no decision had been made, it may well become appropriate to initiate the normalization process at the next meeting," the minutes said.

Upbeat U.S. economic reports released on Thursday added to expectations for a U.S. rate hike before the end of the year.

The U.S. Department of Labor reported on Thursday that the number of individuals filing for initial jobless benefits in the week ending November 14 declined by 5,000 to 271,000 from the previous week’s total of 276,000.

Separately, the Federal Reserve Bank of Philadelphia said that its manufacturing index improved to 1.9 this month from October's reading of -4.5.

Sterling was higher against the euro, with EUR/GBP declining 0.45% to 0.6988.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.