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Forex - Pound declines against stronger dollar

Published 04/15/2015, 04:51 AM
Pound slides lower as greenback regains strength
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EUR/GBP
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Investing.com - The pound declined against the U.S. dollar on Wednesday, as the greenback regained some steam after Tuesday's downbeat U.S. data sent the currency broadly lower and as disappointing reports from China weighed on market sentiment.

GBP/USD hit 1.4719 during European morning trade, the session low; the pair subsequently consolidated at 1.4723, sliding 0.40%.

Cable was likely to find support at 1.4563, the low of April 13 and a five-year low and resistance at 1.4888, the high of April 9.

The dollar regained some ground after the U.S. Commerce Department reported on Tuesday that retail sales rose 0.9% last month, disappointing expectations for a gain of 1.0%.

Meanwhile, markets were jittery after data earlier showed that China's gross domestic product rose 1.3% in the first quarter, below expectations for 1.4% and down from a 1.5% growth rate in the three months to December.

A separate report showed that industrial production in China increased by an annualized rate of 5.6% in March, disappointing expectations for a 6.9% gain, after a 6.8% rise the previous month.

The weak data fuelled concerns over a slowdown in the world's biggest economy.

The pound had weakened on Tuesday after data showed that the annual rate of U.K. consumer inflation remained unchanged at a record low zero in March, unchanged from the previous month and in line with forecasts.

Core inflation, which strips out volatile food and energy costs, slowed to an almost nine-year low of 1.0% last month from 1.2% in February.

Sterling was higher against the euro, with EUR/GBP shedding 0.27% to 0.7188.

Later in the day, the U.S. was to release reports on industrial production and manufacturing activity in New York state.

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