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Forex - Pound slides lower vs. stronger dollar

Published 01/15/2015, 04:34 AM
Pound falls against dollar in quiet trade
GBP/USD
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EUR/GBP
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Investing.com - The pound slid lower against the U.S. dollar on Thursday, as the greenback regained some strength after weakening in the previous session due to downbeat U.S. retail sales data.

GBP/USD hit 1.5201 during European morning trade, the session low; the pair subsequently consolidated at 1.5187, shedding 0.31%.

Cable was likely to find support at 1.5074, the low of January 13 and resistance at 1.5337, the high of January 5.

The dollar regained some ground after falling broadly on Wednesday when a report showed the largest drop in U.S. retail sales in 11 months in December.

Official data showed that U.S. retail sales fell 0.9% last month after rising 0.4% in November.

Separately, sentiment on the pound remained vulnerable after data on Tuesday showed that the annual rate of consumer inflation in the U.K. slowed to 0.5% last month from 1.0% in November. Economists had expected a smaller decline to 0.7%.

Consumer prices were unchanged from a month earlier, compared to expectations for an uptick of 0.1%.

The slowdown in inflation underlined expectations that the Bank of England will keep interest rates on hold at record lows for most of this year.

Sterling was higher against the euro, with EUR/GBP declining 0.43% to 0.7704.

The euro remained under heavy selling pressure after an interim ruling by the European Court of Justice on Wednesday was seen as clearing the way for the European Central Bank to implement quantitative easing measures at its upcoming meeting on January 22.

The advocate general of the European Court of Justice, Pedro Cruz Villalon, advised judges to approve the ECB's Outright Monetary Transactions program, a measure which was launched in 2012.

Later in the day, the U.S. was to publish the weekly report on initial jobless claims as well as data on producer prices and manufacturing activity in the Philadelphia region.

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