Forex - GBP/USD pushes higher as U.S. data disappoints

Published 09/27/2012, 09:19 AM
Updated 09/27/2012, 09:20 AM
GBP/USD
-
EUR/GBP
-
Investing.com - The pound pushed higher against the U.S. dollar on Thursday, as disappointing U.S. reports dampened demand for the greenback, while positive U.K. economic growth data continued to support the pound.

GBP/USD hit 1.6236 during European afternoon trade, the pair's highest since September 25; the pair subsequently consolidated at 1.6224, rising 0.37%.

Cable was likely to find support at 1.6138, Wednesday's low and resistance at 1.6310, the high of September 21 and an almost five-month high.

Official data showed that the U.S. gross domestic product increased at a seasonally adjusted annual rate of 1.3% during the second quarter, down from a previous estimate of 1.7%. Analysts had expected the U.S. economy to grow at a rate of 1.7%.

A separate report showed that total durable goods orders sank by a seasonally adjusted 13.2% in August, compared to expectations for a 5.0% decline, after climbing at a revised rate of 3.3% in July.

Core durable goods orders, which exclude volatile transportation items, fell by a seasonally adjusted 1.6% in August, defying expectations for a 0.3% gain.

In addition, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending September 22 fell by 26,000 to a seasonally adjusted 359,000, compared to expectations for a decrease of 7,000 to 378,000.

The previous week’s figure was revised up to 385,000 from a previously reported 382,000.

The pound found support earlier, after the Office for National Statistics said U.K. gross domestic product contracted by 0.4% in the three months to June, up from the preliminary estimate of a 0.5% decline.

The annualized rate of decline remained unrevised 0.5% in the second quarter, in line with expectations.

A separate report showed that the U.K.’s current account deficit widened to a record-high GBP20.8 in the second quarter, up from a revised GBP15.4 billion in the three months to March.

Economists had expected the current account deficit to narrow to GBP12.4 billion.

Meanwhile, investors remained cautious as Spain’s government was due to unveil its draft budget statement for 2013, amid ongoing speculation over whether Madrid will seek a full-scale sovereign bailout, which would trigger the European Central Bank’s bond buying program.

Sterling was also higher against the euro with EUR/GBP shedding 0.38%, to hit 0.7934.

Later in the day, the U.S. was to publish data on pending home sales.


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.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.