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Forex - Pound edges higher against softer dollar

Published 10/30/2015, 04:44 AM
© Reuters.  Pound gains some ground vs. greenback, eyes on U.S. data
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Investing.com - The pound edged higher against the U.S. dollar on Friday, as sentiment on the greenback remained vulnerable following the previous session's downbeat U.S. data and as investors eyed the release of additional reports later in the day.

GBP/USD hit 1.5359 during European morning trade, the pair's highest since October 27; the pair subsequently consolidated at 1.5330, adding 0.13%.

Cable was likely to find support at 1.5240, Thursday's low and resistance at 1.5382, the high of October 16.

The dollar came under pressure after the Commerce Department reported on Thursday that U.S. gross domestic product grew at an annual rate of 1.5% in the three months to September, missing expectations for growth of 1.6%.

In addition, the U.S. National Association of Realtors said its pending home sales index dropped 2.3% last month, disappointing expectations for a gain of 1.0%.

The greenback had strengthened broadly after Wednesday’s Federal Reserve statement said that officials might make a decision to raise interest rates at their December meeting.

Market participants were now looking ahead to reports on employment costs and U.S. personal spending due later in the day, for further indications on the strength of the economy.

Sterling was fractionally lower against the euro, with EUR/GBP easing up 0.08% to 0.7177.

In the euro zone, a preliminary report showed that Spanish GDP expanded by 0.08% in the third quarter, in line with expectations and down from a growth rate of 1.0% in the three months to June.

A separate report showed that German retail sales were flat in September, disappointing expectations for a 0.4% gain.

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