Investing.com - The pound was steady against the U.S. dollar on Friday, trading near two-month highs as the release of weak U.S. data eased expectations for a near-term end to the Federal Reserve's stimulus program, weighing on the greenback.
GBP/USD hit 1.5618 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.5628, inching 0.03% lower.
Cable was likely to find support at 1.5510, Thursday's low and resistance at 1.5720, the high of June 18.
In a preliminary report, the University of Michigan said its consumer sentiment index fell to 80.0 in August, from a reading of 85.1 the previous month. Analysts had expected the index to rise to 85.5 this month.
Official data earlier showed that U.S. building permits rose 2.7% to 0.943 million units in July, disappointing expectations for an increase of 2.9% to 0.945 million units. The previous month's figure was revised up to 0.918 million units from 0.911 million.
The report also showed that housing starts rose 5.9% to 0.896 million units last month, confounding expectations for a 8.3% increase to 0.900 million units. The previous month's figure was revised up to 0.846 million units from 0.836 million.
Separately, the Bureau of Labor Statistics said in a preliminary report that nonfarm productivity rose 0.9% in the second quarter, beating expectations for a 0.6% gain, after a 1.7% decline in the previous quarter.
The mixed reports added to speculation that the U.S. economic recovery is not yet strong enough for the the Fed to begin scaling back its USD85 billion-a-month asset purchase program later this year.
Sterling was also steady against the pound with EUR/GBP easing up 0.01%, to hit 0.8539.
In the euro zone, official data showed that consumer price inflation remained unchanged at an annualized rate of 1.6% in July, in line with expectations.
The bloc's core consumer price inflation, which excludes food, energy, alcohol, and tobacco, slipped to an annualized rate 1.1% last month, from 1.2% in June.
The data came after the European Central Bank said the current account surplus narrowed more than expected in June, falling to EUR16.9 billion from a surplus of EUR19.5 billion the previous month.
Analysts had expected the current account surplus to narrow to EUR19.0 billion in June.
GBP/USD hit 1.5618 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.5628, inching 0.03% lower.
Cable was likely to find support at 1.5510, Thursday's low and resistance at 1.5720, the high of June 18.
In a preliminary report, the University of Michigan said its consumer sentiment index fell to 80.0 in August, from a reading of 85.1 the previous month. Analysts had expected the index to rise to 85.5 this month.
Official data earlier showed that U.S. building permits rose 2.7% to 0.943 million units in July, disappointing expectations for an increase of 2.9% to 0.945 million units. The previous month's figure was revised up to 0.918 million units from 0.911 million.
The report also showed that housing starts rose 5.9% to 0.896 million units last month, confounding expectations for a 8.3% increase to 0.900 million units. The previous month's figure was revised up to 0.846 million units from 0.836 million.
Separately, the Bureau of Labor Statistics said in a preliminary report that nonfarm productivity rose 0.9% in the second quarter, beating expectations for a 0.6% gain, after a 1.7% decline in the previous quarter.
The mixed reports added to speculation that the U.S. economic recovery is not yet strong enough for the the Fed to begin scaling back its USD85 billion-a-month asset purchase program later this year.
Sterling was also steady against the pound with EUR/GBP easing up 0.01%, to hit 0.8539.
In the euro zone, official data showed that consumer price inflation remained unchanged at an annualized rate of 1.6% in July, in line with expectations.
The bloc's core consumer price inflation, which excludes food, energy, alcohol, and tobacco, slipped to an annualized rate 1.1% last month, from 1.2% in June.
The data came after the European Central Bank said the current account surplus narrowed more than expected in June, falling to EUR16.9 billion from a surplus of EUR19.5 billion the previous month.
Analysts had expected the current account surplus to narrow to EUR19.0 billion in June.