Investing.com – The pound extended losses against the U.S. dollar on Tuesday, tumbling to a 5-day low, after official data showed that the U.S. economy grew at a faster rate than earlier estimated during the third quarter.
GBP/USD hit 1.5852 during European afternoon trade, the pair’s lowest since November 16; the pair subsequently consolidated at 1.5868, shedding 0.55%.
Cable was likely to find support at 1.5721, the low of October 28 and resistance at 1.6083, Monday’s high.
Earlier in the day, preliminary data released by the Bureau of Economic Analysis said gross domestic product increased at a seasonally adjusted annual rate of 2.5% during the third quarter, up from an advanced estimate of 2.0%. Analysts had expected the second estimate of U.S. GDP to reach 2.4% in the third quarter.
The faster-than-expected growth came as exports, and consumer and government spending were stronger than initially thought.
Separate data showed that U.S. existing home sales fell less-than-expected in October, while the Richmond manufacturing index rose more-than-expected in November.
Also Tuesday, Adair Turner, chairman of the U.K. Financial Services Authority said that it was “broadly speaking not the case” that British banks were heavily exposed in Ireland.
Meanwhile, the pound was sharply higher against the euro, with EUR/GBP plummeting 0.99% to hit 0.8454.
Later in the day, the Federal Reserve was to publish the minutes of its November monetary policy meeting.
GBP/USD hit 1.5852 during European afternoon trade, the pair’s lowest since November 16; the pair subsequently consolidated at 1.5868, shedding 0.55%.
Cable was likely to find support at 1.5721, the low of October 28 and resistance at 1.6083, Monday’s high.
Earlier in the day, preliminary data released by the Bureau of Economic Analysis said gross domestic product increased at a seasonally adjusted annual rate of 2.5% during the third quarter, up from an advanced estimate of 2.0%. Analysts had expected the second estimate of U.S. GDP to reach 2.4% in the third quarter.
The faster-than-expected growth came as exports, and consumer and government spending were stronger than initially thought.
Separate data showed that U.S. existing home sales fell less-than-expected in October, while the Richmond manufacturing index rose more-than-expected in November.
Also Tuesday, Adair Turner, chairman of the U.K. Financial Services Authority said that it was “broadly speaking not the case” that British banks were heavily exposed in Ireland.
Meanwhile, the pound was sharply higher against the euro, with EUR/GBP plummeting 0.99% to hit 0.8454.
Later in the day, the Federal Reserve was to publish the minutes of its November monetary policy meeting.