Investing.com - The pound pushed lower against the U.S. dollar on Friday, after a string of U.S. data painted a mixed picture of the strength of the country's economic recovery, while concerns over U.S. budget talks remained.
GBP/USD hit 1.6198 during U.S. morning trade, the pair's lowest since December 18; the pair subsequently consolidated at 1.6215, dropping 0.39%.
Cable was likely to find support at 1.6158, the low of December 17 and resistance at 1.6285, the session high.
In a revised report, the University of Michigan said its index of consumer sentiment unexpectedly deteriorated in December, ticking down to 72.9 from a reading of 74.5 the previous month. Analysts had expected the index to improve to 74.7 this month.
The data came after the U.S. Census Bureau said that core durable goods orders, which exclude transportation items, rose 1.6% in November, beating expectations for a 0.2% dip, after a 1.9% increase the previous month.
Durable goods orders rose by 0.7% last month, compared with expectations for a 0.2% rise, following a 1.1% increase in October.
A separate report showed that personal spending in the U.S. rose by 0.4% in November, more than the expected 0.3% rise, after a 0.1% fall the previous month.
Meanwhile, sentiment remained under pressure after U.S. House Speaker John Boehner pulled his so-called Plan B fiscal cliff option, which called for tax increases only on those Americans earning USD1 million or more per year, because his Republican colleagues did not support the legislation.
Failure to prevent tax hikes from taking effect at the end of this year right when automatic spending cuts are due to take effect could tip the U.S. economy into a recession.
In the U.K., official data earlier showed that the economy expanded less-than-anticipated in the third quarter, rising 0.09%, below expectations for a 1% rise.
A separate report showed that public sector net borrowing rose more-than-expected in November, rising to GBP15.3 billion from GBP6 billion the previous month. Analysts had expected public sector net borrowing to rise to GBP14.2 billion last month.
Meanwhile, official data also showed that the U.K.'s current account deficit narrowed to GBP12.8 billion in the third quarter from a deficit of GBP17.4 billion, beating expectations for a drop to GBP14 billion.
Sterling was steady against the euro with EUR/GBP slipping 0.04%, to hit 0.8133.
Also Friday, research group Gfk said that its index of Germany’s consumer climate fell to 5.6 in December from a reading of 5.8 the previous month. Analysts had expected the index to improve to 5.9 this month.
GBP/USD hit 1.6198 during U.S. morning trade, the pair's lowest since December 18; the pair subsequently consolidated at 1.6215, dropping 0.39%.
Cable was likely to find support at 1.6158, the low of December 17 and resistance at 1.6285, the session high.
In a revised report, the University of Michigan said its index of consumer sentiment unexpectedly deteriorated in December, ticking down to 72.9 from a reading of 74.5 the previous month. Analysts had expected the index to improve to 74.7 this month.
The data came after the U.S. Census Bureau said that core durable goods orders, which exclude transportation items, rose 1.6% in November, beating expectations for a 0.2% dip, after a 1.9% increase the previous month.
Durable goods orders rose by 0.7% last month, compared with expectations for a 0.2% rise, following a 1.1% increase in October.
A separate report showed that personal spending in the U.S. rose by 0.4% in November, more than the expected 0.3% rise, after a 0.1% fall the previous month.
Meanwhile, sentiment remained under pressure after U.S. House Speaker John Boehner pulled his so-called Plan B fiscal cliff option, which called for tax increases only on those Americans earning USD1 million or more per year, because his Republican colleagues did not support the legislation.
Failure to prevent tax hikes from taking effect at the end of this year right when automatic spending cuts are due to take effect could tip the U.S. economy into a recession.
In the U.K., official data earlier showed that the economy expanded less-than-anticipated in the third quarter, rising 0.09%, below expectations for a 1% rise.
A separate report showed that public sector net borrowing rose more-than-expected in November, rising to GBP15.3 billion from GBP6 billion the previous month. Analysts had expected public sector net borrowing to rise to GBP14.2 billion last month.
Meanwhile, official data also showed that the U.K.'s current account deficit narrowed to GBP12.8 billion in the third quarter from a deficit of GBP17.4 billion, beating expectations for a drop to GBP14 billion.
Sterling was steady against the euro with EUR/GBP slipping 0.04%, to hit 0.8133.
Also Friday, research group Gfk said that its index of Germany’s consumer climate fell to 5.6 in December from a reading of 5.8 the previous month. Analysts had expected the index to improve to 5.9 this month.