Investing.com - The pound erased gains against the broadly stronger dollar on Thursday after official data showed that the U.K. economy expanded in line with expectations in the second quarter.
GBP/USD pulled back from 1.5386 the session high, to hit 1.5305 during European morning trade, dipping 0.06%.
Cable was likely to find support at 1.5288, Wednesday’s low and resistance at 1.5391, the high of July 23.
The Office for National Statistics said U.K. gross domestic product expanded at a seasonally adjusted annual rate of 1.4% in the three months to June, in line with expectations. The economy grew by 0.3% year-on-year in the first quarter.
The U.K. economy expanded 0.6% in the second quarter, in line with expectations after a 0.3% expansion in the first quarter.
The ONS said the service sector expanded by 0.6%, the manufacturing sector grew 0.4% and the construction sector grew by 0.9%.
The dollar was broadly stronger after official data on Wednesday showed that U.S. new home sales jumped to a five-year high in June.
The data was seen as increasing the likelihood that the Federal Reserve will start to pull back on its monetary stimulus program later this year.
Sterling was lower against the euro, with EUR/GBP down 0.13% to 0.8606.
Earlier Thursday, data showed that the Ifo index of German business climate ticked up to 106.2 in July from 105.9 In June, slightly better than expectations for a reading of 106.1.
Investors were looking ahead to data on U.S. jobless claims and durable goods orders later in the trading day, amid ongoing speculation over whether the Federal Reserve will start to taper its asset purchase program later this year.
GBP/USD pulled back from 1.5386 the session high, to hit 1.5305 during European morning trade, dipping 0.06%.
Cable was likely to find support at 1.5288, Wednesday’s low and resistance at 1.5391, the high of July 23.
The Office for National Statistics said U.K. gross domestic product expanded at a seasonally adjusted annual rate of 1.4% in the three months to June, in line with expectations. The economy grew by 0.3% year-on-year in the first quarter.
The U.K. economy expanded 0.6% in the second quarter, in line with expectations after a 0.3% expansion in the first quarter.
The ONS said the service sector expanded by 0.6%, the manufacturing sector grew 0.4% and the construction sector grew by 0.9%.
The dollar was broadly stronger after official data on Wednesday showed that U.S. new home sales jumped to a five-year high in June.
The data was seen as increasing the likelihood that the Federal Reserve will start to pull back on its monetary stimulus program later this year.
Sterling was lower against the euro, with EUR/GBP down 0.13% to 0.8606.
Earlier Thursday, data showed that the Ifo index of German business climate ticked up to 106.2 in July from 105.9 In June, slightly better than expectations for a reading of 106.1.
Investors were looking ahead to data on U.S. jobless claims and durable goods orders later in the trading day, amid ongoing speculation over whether the Federal Reserve will start to taper its asset purchase program later this year.