Investing.com - The pound trimmed losses against the U.S. dollar on Friday, but remained under pressure as market sentiment weakened amid ongoing uncertainty over the future of the Federal Reserve's stimulus program.
GBP/USD pulled away from 1.5498, the session low, to hit 1.5525 during U.S. morning trade, easing 0.08%.
Cable was likely to find support at 1.5397, the low of June 25 and resistance at 1.5653, the high of June 11.
Sterling rose to session highs against the dollar earlier, after the Office for National Statistics earlier said that the U.K. trade deficit narrowed more than expected in June, improving to GBP8.08 billion from a deficit of GBP8.67 billion the previous month.
Analysts had expected the trade deficit to narrow to GBP8.50 billion in June.
But investors remained cautious after Cleveland Fed President Sandra Pianalto said Wednesday there has been “meaningful improvement” in the labor market and that tapering may be warranted if it continues to strengthen.
Her comments echoed similar remarks made by Chicago Fed President Charles Evans and Dallas Fed President Richard Fisher earlier in the week.
The pound was steady against the euro with EUR/GBP inching 0.07% lower, to hit 0.8606.
Also Friday, official data showed that industrial production in France dropped 1.4% in June, disappointing expectations for a 0.1% rise. The previous month's figure was revised up to a 0.3% fall from a previously estimated 0.4% decline.
GBP/USD pulled away from 1.5498, the session low, to hit 1.5525 during U.S. morning trade, easing 0.08%.
Cable was likely to find support at 1.5397, the low of June 25 and resistance at 1.5653, the high of June 11.
Sterling rose to session highs against the dollar earlier, after the Office for National Statistics earlier said that the U.K. trade deficit narrowed more than expected in June, improving to GBP8.08 billion from a deficit of GBP8.67 billion the previous month.
Analysts had expected the trade deficit to narrow to GBP8.50 billion in June.
But investors remained cautious after Cleveland Fed President Sandra Pianalto said Wednesday there has been “meaningful improvement” in the labor market and that tapering may be warranted if it continues to strengthen.
Her comments echoed similar remarks made by Chicago Fed President Charles Evans and Dallas Fed President Richard Fisher earlier in the week.
The pound was steady against the euro with EUR/GBP inching 0.07% lower, to hit 0.8606.
Also Friday, official data showed that industrial production in France dropped 1.4% in June, disappointing expectations for a 0.1% rise. The previous month's figure was revised up to a 0.3% fall from a previously estimated 0.4% decline.