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Forex - GBP/USD pushes higher in subdued trade

Published 05/08/2013, 10:37 AM
Updated 05/08/2013, 10:38 AM
GBP/USD
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EUR/GBP
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Investing.com - The pound pushed higher against the U.S. dollar in subdued trade on Wednesday, as market sentiment remained supported by strong industrial production data out of Germany.

GBP/USD hit 1.5539 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.5542, adding 0.37%.

Cable was likely to find support at 1.5417, the low of April 26 and resistance at 1.5550, Tuesday’s high.

Official data showed that German industrial output jumped 1.2% in March, confounding expectations for a 0.1% decline.

The data came one day after a report showed that German factory orders also beat expectations in March, rising 2.2%, the fastest rate of growth since October 2012.

The data fuelled optimism over the outlook for first quarter growth in the euro zone’s largest economy after Germany’s economy contracted by 0.5% in the three months to December.

In the U.K., officials from the International Monetary Fund prepared to begin its annual assessment of the British economy.

In April, the IMF cut its economic growth forecast for the U.K. to 0.7% in 2013 from 1% in January and suggested that the government scale back austerity measures in the short-term to help bolster the ailing economy.

Elsewhere, sterling was lower against the euro, with EUR/GBP rising 0.30% to 0.8470.

Also Wednesday, a report by the British Retail Consortium said retail sales fell sharply in April, as a result of an early Easter holiday, but the underlying trend appears to be improving.

The BRC said retail Sales fell 2.2% year-on-year, confounding expectations for a 1.8% increase.

Meanwhile, U.K. mortgage lender Halifax said house prices rose 1.1% in May, beating expectations for a 0.2% increase.


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