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Forex - GBP/USD remains moderately lower in subdued trade

Published 10/28/2013, 11:32 AM
GBP/USD
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EUR/GBP
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Investing.com - The pound remained moderately lower against the U.S. dollar in subdued trade on Monday, as investors awaited the Federal Reserve's upcoming policy statement, due later in the week.

GBP/USD hit 1.6136 during U.S. morning trade, the pair's lowest since October 23; the pair subsequently consolidated at 1.6143, falling 0.15%.

Cable was likely to find support at 1.6030, the low of September 27 and resistance at 1.6257, the high of October 23.

Investors remained cautious ahead of the Fed's upcoming policy meeting later in the week after recent disappointing economic data cemented expectations that the central bank will maintain the current pace of its asset purchase program into the first quarter of next year.

In the U.S., data released on Monday showed that U.S. industrial production rose by a 0.6% last month, above expectations for a 0.4% rise and the fastest increase in seven months.

A separate report showed that U.S. pending home sales fell 5.6% last month, down for the fourth consecutive month.

Elsewhere, the pound showed little reaction after a report compiled by the Confederation of British Industry said just 2% of retailers reported an increase in sales in October, down from 34% in September.

Demand for sterling remained supported after data on Friday showed that the U.K. economy grew at the fastest pace in three years in the third quarter.

The Office of National Statistics said the U.K. economy expanded by 0.8% in the three months to September and grew 1.5% on a year-over-year basis.

Sterling was steady against the euro with EUR/GBP easing 0.02%, to hit 0.8536.


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