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Forex - GBP/USD steady, weak U.K. data caps gains

Published 03/29/2012, 05:06 AM
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Investing.com - The pound firmed up against the U.S. dollar on Thursday, but investors remained wary of pushing sterling too high, after weak U.K. economic data underlined concerns over the outlook for growth.
 
GBP/USD hit 1.5934 during European morning trade, the session high; the pair subsequently consolidated at 1.5911, gaining 0.14%.
 
Cable was likely to find support at 1.5841, Wednesday’s low and resistance at 1.5963, Wednesday’s high.
 
The Bank of England said earlier that U.K. mortgage approvals fell to their lowest level in more than eight months in February, falling to 48,986, down from 57,899 the previous month.
 
A separate report showed that U.K. house prices posted the largest monthly decline in more than two years this month.
 
Mortgage lender Nationwide said its house price index declined 1.0% in March, defying expectations for a 0.2% increase.
 
Home prices fell at an annualized rate of 0.9%, confounding expectations for a 0.9% increase, after rising by 0.9% in February.
 
The reports came just one day after official data showed that the U.K. economy contracted by 0.3% in the last three months of 2011, more than preliminary estimates for a 0.2% contraction.
 
The pound was lower against the euro, with EUR/GBP sliding 0.17% to hit 0.8367.
 
Later in the day, the U.S. was to publish government data on unemployment claims, as well as final data on fourth quarter gross domestic product. In addition, Federal Reserve Chairman Ben Bernanke was to speak.  


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