Investing.com - " The pound edged lower against the dollar on
Monday after official data revealed activity in U.S. factories,
mines and utilities was stronger in September than many were
In U.S. trading on Monday, GBP/USD was trading at 1.6158, down
0.06%, up from a session low of 1.6125 and off from a high of
Cable was likely to find support at 1.6116, Tuesday's low, and
resistance at 1.6247, Friday's high.
The Federal Reserve reported on Monday that U.S. industrial
production rose by a 0.6% last month, above expectations for a 0.4%
rise and the fastest increase in seven months.
The news gave the dollar some support, though investors remained
cautious ahead of the Fed's upcoming policy meeting later in the
A string of disappointing economic reports has cemented
expectations that the central bank will maintain the current pace
of its USD85 billion in monthly asset purchases into early next
Asset purchases aim to spur recovery by driving down long-term
borrowing costs, weakening the dollar in the process.
Still, the upbeat industrial output number gave investors some hope
that sooner or later, the Fed will begin to taper the pace of its
stimulus program, which would give the dollar support afterwards.
Elsewhere, industry data revealed that U.S. pending home sales fell
5.6% last month, down for the fourth consecutive month and well
below market calls for a gain of 0.1%, which capped the dollar's
Meanwhile in the U.K., Bank of England policymaker David Miles said
Monday that raising interest rates before there was a "meaningful"
reduction in the unemployment rate would be "pretty catastrophic,"
which softened the pound.
Elsewhere, the pair shrugged off a Confederation of British
Industry report that found just 2% of retailers reported an
increase in sales in October, down from 34% in September.
The pound, meanwhile, was down against the euro and up against the
yen, with EUR/GBP up 0.08% at 0.8545 and GBP/JPY up 0.18% at
On Tuesday, the U.K. is to publish data on net lending to
The U.S. is to produce data on retail sales, the government measure
of consumer spending, which accounts for the majority of overall
economic activity. The U.S. is also to publish data on producer
price inflation and a report on consumer confidence, a leading
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