Investing.com - The pound erased gains against the dollar on Thursday, falling to fresh three-week lows following the release of data showing that the U.K. economy grew at a slower rate than initially thought in the first quarter.
GBP/USD pulled back from 1.5345, the session high, to hit 1.5276 during European morning trade, down 0.24%.
Cable was likely to find support at 1.5190, the low of June 3 and resistance at 1.5345, the session high.
The Office of National Statistics said U.K. gross domestic product expanded at an annual rate of 0.3% in the three months to March, down from a preliminary estimate of 0.6% growth. Economists had expected that annual rate of growth to remain unchanged.
The U.K. economy expanded 0.3% from the previous quarter, in line with the preliminary estimate and economists’ forecasts.
The ONS also said the U.K. economy contracted by 7.2% in the aftermath of the 2008 financial crisis, compared to earlier estimates of a 6.3% decline.
The dollar continued to be supported by expectations that the Federal Reserve will start to scale back its bond buying program later this year, despite a downward revision to U.S. first quarter growth on Wednesday.
The Commerce Department said the U.S. economy expanded at an annual rate of 1.8%, below an earlier estimate of 2.4% growth. Economists had expected the rate of growth to remain unchanged at 2.4%.
Elsewhere, sterling fell to session lows against the euro, with EUR/GBP advancing 0.43% to 0.8530.
The U.S. was to release the weekly government report on initial jobless claims and a report on pending home sales later Thursday.
GBP/USD pulled back from 1.5345, the session high, to hit 1.5276 during European morning trade, down 0.24%.
Cable was likely to find support at 1.5190, the low of June 3 and resistance at 1.5345, the session high.
The Office of National Statistics said U.K. gross domestic product expanded at an annual rate of 0.3% in the three months to March, down from a preliminary estimate of 0.6% growth. Economists had expected that annual rate of growth to remain unchanged.
The U.K. economy expanded 0.3% from the previous quarter, in line with the preliminary estimate and economists’ forecasts.
The ONS also said the U.K. economy contracted by 7.2% in the aftermath of the 2008 financial crisis, compared to earlier estimates of a 6.3% decline.
The dollar continued to be supported by expectations that the Federal Reserve will start to scale back its bond buying program later this year, despite a downward revision to U.S. first quarter growth on Wednesday.
The Commerce Department said the U.S. economy expanded at an annual rate of 1.8%, below an earlier estimate of 2.4% growth. Economists had expected the rate of growth to remain unchanged at 2.4%.
Elsewhere, sterling fell to session lows against the euro, with EUR/GBP advancing 0.43% to 0.8530.
The U.S. was to release the weekly government report on initial jobless claims and a report on pending home sales later Thursday.