Forex - GBP/USD slightly higher as Spain budget eyed

Published 09/27/2012, 05:10 AM
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Investing.com - The pound was slightly higher against the U.S. dollar on Thursday, as markets awaited Spain’s budget announcement, while revised data showed that the U.K. economy contracted slightly less than initially estimated in the second quarter.

GBP/USD hit 1.6205 during European morning trade, the session high; the pair subsequently consolidated at 1.6189, gaining 0.15%.

Cable was likely to find support at 1.6136, Wednesday’s low and an almost two-week low and resistance at 1.6266, the high of September 25.

Spain’s government was due to unveil its draft budget statement for 2013 later in the session, amid ongoing speculation over whether Madrid will seek a full-scale sovereign bailout.

In the U.K., the Office for National Statistics said gross domestic product contracted by 0.4% in the three months to June, up from the preliminary estimate of a 0.5% decline.

The annualized rate of decline remained unrevised 0.5%, in line with expectations.

A separate report showed that the U.K.’s current account deficit widened to a record-high GBP20.8 in the second quarter, up from a revised GBP15.4 billion in the three months to March.

Economists had expected the current account deficit to narrow to GBP12.4 billion.

Sterling was higher against the euro, with EUR/GBP down 0.21% to 0.7947.

Later in the day, the U.S. was to publish its weekly report on initial jobless claims as well as data on pending home sales and durable goods orders.



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