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Forex - GBP/USD pushes lower after U.S. data

Published 05/31/2013, 10:40 AM
Updated 05/31/2013, 10:47 AM
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EUR/GBP
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Investing.com - The pound pushed lower against the U.S. dollar on Friday, as upbeat U.S. data added to expectations for the Federal Reserve to scale down its bond-buying program, sending the greenback broadly higher.

GBP/USD hit 1.5152 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.5170, declining 0.41%.

Cable was likely to find support at 1.5087, the low of May 27 and resistance at 1.5263, the high of May 21.

Revised data showed that the University of Michigan's consumer sentiment index rose to 84.5 in May, from a reading of 83.7 the previous month. Analysts had expected the index to remain unchanged this month.

A separate report showed that the Chicago purchasing managers' index climbed to 58.7 this month, from a reading of 49.0 in April, beating expectations for a rise to 50.0.

The reports came after official data showed that U.S. personal spending fell 0.2% in April, confounding expectations for a 0.1% rise, after a 0.1% increase the previous month.

In the U.K., the Bank of England said that net lending to individuals rose by GBP1.4 billion in April, beating expectations for a GBP0.9 billion increase, after a GBP1.1 billion rise the previous month.

Sterling was higher against the euro with EUR/GBP slipping 0.13%, to hit 0.8552.

The euro remained under pressure after official data showed that the unemployment rate in the euro zone rose to a new record high of 12.2% in April, from 12.1% the previous month, in line with expectations.

Separately, a preliminary report showed that the bloc's consumer price index rose to an annualized rate of 1.4% this month, from 1.2% in April, as anticipated.

In Germany, Destatits said retail sales fell 0.4% in April, disappointing expectations for a 0.2% rise, after a 0.1% decline the previous month.


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