Investing.com - The pound extended losses against the U.S. dollar on Wednesday, falling to a fresh two-day low as weaker-than-expected data on durable goods orders weighed on sentiment while earlier U.K. GDP data continued to dampen demand for sterling.
GBP/USD hit 1.5843 during U.S. morning trade, the pair’s lowest since March 26; the pair subsequently consolidated at 1.5854, dropping 0.59%.
Cable was likely to find support at 1.5805, the low of March 23 and resistance at 1.5963, the day’s high.
The Commerce Department said durable goods orders rose 2.2% in February, partially reversing the previous months revised 3.6% decline, but fell short of expectations for a 3.0% increase.
Core durable goods orders, which exclude transportation, rose by a seasonally adjusted 1.6% in February, compared to expectations for a 1.5% gain.
The data came one day after Federal Reserve Chairman Ben Bernanke said that it was still too early to declare victory in the U.S. economic recovery, fanning speculation that the central bank may embark on a third round of monetary easing to shore up growth.
Meanwhile, data showed that the U.K. economy contracted more-than-initially estimated in the final three months of 2011.
The Office for National Statistics said gross domestic product contracted at a seasonally adjusted rate of 0.3% during the fourth quarter, more than the preliminary estimate of a 0.2% contraction.
Annualized GDP rose at a rate of 0.5%, below expectations for growth of 0.7%.
The report also showed that U.K. household incomes fell by 1.2% in 2011, the largest annual decline since 1977.
A separate report showed that the U.K.’s current account deficit narrowed to GBP8.5 billion in the fourth quarter, broadly in line with expectations.
Elsewhere, the pound was sharply lower against the euro with EUR/GBP rising 0.47%, to hit 0.8387.
Investors were also eyeing a meeting of euro zone finance ministers in Copenhagen on Friday, amid speculation that they will reach an agreement on a larger debt firewall to combat the debt crisis in the region.
GBP/USD hit 1.5843 during U.S. morning trade, the pair’s lowest since March 26; the pair subsequently consolidated at 1.5854, dropping 0.59%.
Cable was likely to find support at 1.5805, the low of March 23 and resistance at 1.5963, the day’s high.
The Commerce Department said durable goods orders rose 2.2% in February, partially reversing the previous months revised 3.6% decline, but fell short of expectations for a 3.0% increase.
Core durable goods orders, which exclude transportation, rose by a seasonally adjusted 1.6% in February, compared to expectations for a 1.5% gain.
The data came one day after Federal Reserve Chairman Ben Bernanke said that it was still too early to declare victory in the U.S. economic recovery, fanning speculation that the central bank may embark on a third round of monetary easing to shore up growth.
Meanwhile, data showed that the U.K. economy contracted more-than-initially estimated in the final three months of 2011.
The Office for National Statistics said gross domestic product contracted at a seasonally adjusted rate of 0.3% during the fourth quarter, more than the preliminary estimate of a 0.2% contraction.
Annualized GDP rose at a rate of 0.5%, below expectations for growth of 0.7%.
The report also showed that U.K. household incomes fell by 1.2% in 2011, the largest annual decline since 1977.
A separate report showed that the U.K.’s current account deficit narrowed to GBP8.5 billion in the fourth quarter, broadly in line with expectations.
Elsewhere, the pound was sharply lower against the euro with EUR/GBP rising 0.47%, to hit 0.8387.
Investors were also eyeing a meeting of euro zone finance ministers in Copenhagen on Friday, amid speculation that they will reach an agreement on a larger debt firewall to combat the debt crisis in the region.