Investing.com - The pound remained lower against the U.S. dollar on Thursday, as disappointing economic growth data out of the U.K. continued to weigh on demand for sterling, although disappointing U.S. economic reports limited the greenback's gains.
GBP/USD hit 1.6016 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.6018, shedding 0.39%.
Cable was likely to find support at 1.5893, the low of September 18 and resistance at 1.6146, the high of September 19.
The pound came under pressure after official data showed that the U.K. economy expanded by 0.7% in the second quarter, in line with market expectations.
On a yearly basis, U.K. gross domestic product rose 1.3% in the three months to June, compared to expectations for a 1.5% increase.
A separate report showed that the U.K. current account deficit narrowed less-than-expected in the last quarter, improving to GBP13 billion from a deficit of GBP21.8 billion in the three months to March.
Analysts had expected the current account deficit to narrow to GBP12 billion in the second quarter.
In the U.S., industry data showed that U.S. pending home sales dropped 1.6% in August, more than the expected 1% decline, following a downwardly revised 1.4% fall the previous month.
Data also showed that the U.S. economy expanded by 2.5% in the second quarter, confounding expectations for a 2.6% expansion.
In addition, the U.S. Department of Labor said that the number of people who filed for unemployment assistance in the U.S. in the week ending September 20 fell by 5,000 to a seasonally adjusted 305,000, from a downwardly revised 310,000 the previous week.
The data came after a recent string of economic reports underlined concerns over the outlook for the U.S. economic recovery. Last week, the Fed said it wanted to see more evidence of a sustained economic recovery before it reduced stimulus.
Sterling was also lower against the euro with EUR/GBP adding 0.11%, to hit 0.8421.
U.S. budget concerns weighed on market sentiment as Republican leaders in the U.S. House of Representatives notified members that a vote on raison the debt limit could come as early as Friday.
The U.S. Congress is struggling to pass a spending bill to keep the government funded beyond October 1.
GBP/USD hit 1.6016 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.6018, shedding 0.39%.
Cable was likely to find support at 1.5893, the low of September 18 and resistance at 1.6146, the high of September 19.
The pound came under pressure after official data showed that the U.K. economy expanded by 0.7% in the second quarter, in line with market expectations.
On a yearly basis, U.K. gross domestic product rose 1.3% in the three months to June, compared to expectations for a 1.5% increase.
A separate report showed that the U.K. current account deficit narrowed less-than-expected in the last quarter, improving to GBP13 billion from a deficit of GBP21.8 billion in the three months to March.
Analysts had expected the current account deficit to narrow to GBP12 billion in the second quarter.
In the U.S., industry data showed that U.S. pending home sales dropped 1.6% in August, more than the expected 1% decline, following a downwardly revised 1.4% fall the previous month.
Data also showed that the U.S. economy expanded by 2.5% in the second quarter, confounding expectations for a 2.6% expansion.
In addition, the U.S. Department of Labor said that the number of people who filed for unemployment assistance in the U.S. in the week ending September 20 fell by 5,000 to a seasonally adjusted 305,000, from a downwardly revised 310,000 the previous week.
The data came after a recent string of economic reports underlined concerns over the outlook for the U.S. economic recovery. Last week, the Fed said it wanted to see more evidence of a sustained economic recovery before it reduced stimulus.
Sterling was also lower against the euro with EUR/GBP adding 0.11%, to hit 0.8421.
U.S. budget concerns weighed on market sentiment as Republican leaders in the U.S. House of Representatives notified members that a vote on raison the debt limit could come as early as Friday.
The U.S. Congress is struggling to pass a spending bill to keep the government funded beyond October 1.