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Forex - Pound slips lower against stronger greenback

Published 07/31/2015, 05:16 AM
Pound edges down vs. dollar, eyes on U.S. data
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Investing.com - The pound slipped lower against the U.S. dollar on Friday, as demand for the greenback remained supported by the previous session's second quarter U.S. growth report and as markets eyed upcoming data on U.S. consumer sentiment.

GBP/USD hit 1.5550 during European morning trade, the pair's lowest since July 28; the pair subsequently consolidated at 1.5572, edging down 0.18%.

Cable was likely to find support at 1.5489, the low of July 27 and resistance at 1.5692, the high of July 29.

The Commerce Department reported on Thursday that U.S. gross domestic product expanded at an annual rate of 2.3% in the three months to June. First quarter growth was revised up to 0.6% from a previously reported contraction of 0.2%.

Although economists had forecast growth of 2.6% the report still indicated that the economy is on a solid footing.

The data came after the Fed said in its rate statement on Wednesday that the economy and the labor market had continued to strengthen, reinforcing expectations for an initial rate hike at its September meeting.

Fed officials said they felt the economy had recovered from a first-quarter slowdown and was now "expanding moderately."

Fed Chair Janet Yellen has said the central bank could raise rates as soon as September if the economy continues to improve as expected.

The pound's losses were limited however by mounting expectations for a rate hike by the Bank of England before the end of the year.

Sterling was lower against the euro, with EUR/GBP climbing 0.40% to 0.7036.

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