Investing.com - The pound was lower against the broadly stronger dollar on Thursday as expectations that the Federal Reserve may scale back its easing program later this year continued to underpin dollar demand.
GBP/USD hit 1.5197 during European morning trade, the session low; the pair subsequently consolidated at 1.5201, shedding 0.22%.
Cable was likely to find support at 1.5172, Wednesday’s low and a six-week low and resistance at 1.5271, Wednesday’s high.
The dollar remained stronger despite data on Wednesday showing that U.S. industrial production fell by 0.5% in April, more than forecasts for a 0.2% drop.
Investors were looking ahead to a series of U.S. data releases later in the day, including data on jobless claims, housing starts and consumer inflation amid speculation over a possible near-term exit from the Federal Reserve’s asset purchase program.
In the U.K., the Bank of England revised up its forecast for growth on Wednesday, saying it now expected the economy to expand by 0.5% in the current quarter, up from 0.3% in the three months to March.
The bank also said it expects inflation to remain above its 2% target for most of the next two years.
Sterling was little changed against the euro, with EUR/GBP dipping 0.04% to 0.8454.
The single currency remained under pressure after data on Wednesday showed the euro zone economy contracted by 0.2% in the first quarter, bringing the annualized rate of contraction to 0.9%.
The data fuelled expectations for further easing measures from the European Central Bank after the bank cut interest rates to a record low 0.5% earlier this month.
GBP/USD hit 1.5197 during European morning trade, the session low; the pair subsequently consolidated at 1.5201, shedding 0.22%.
Cable was likely to find support at 1.5172, Wednesday’s low and a six-week low and resistance at 1.5271, Wednesday’s high.
The dollar remained stronger despite data on Wednesday showing that U.S. industrial production fell by 0.5% in April, more than forecasts for a 0.2% drop.
Investors were looking ahead to a series of U.S. data releases later in the day, including data on jobless claims, housing starts and consumer inflation amid speculation over a possible near-term exit from the Federal Reserve’s asset purchase program.
In the U.K., the Bank of England revised up its forecast for growth on Wednesday, saying it now expected the economy to expand by 0.5% in the current quarter, up from 0.3% in the three months to March.
The bank also said it expects inflation to remain above its 2% target for most of the next two years.
Sterling was little changed against the euro, with EUR/GBP dipping 0.04% to 0.8454.
The single currency remained under pressure after data on Wednesday showed the euro zone economy contracted by 0.2% in the first quarter, bringing the annualized rate of contraction to 0.9%.
The data fuelled expectations for further easing measures from the European Central Bank after the bank cut interest rates to a record low 0.5% earlier this month.