Forex - GBP/USD drops on U.K. data, IMF global growth revisions

A A A - The pound slid against the dollar on Wednesday as investors flocked to the safety of the greenback after the IMF cut its global growth forecast.

Disappointing U.K. unemployment numbers also pushed Cable down.

In U.S. trading on Wednesday, GBP/USD was trading at 1.5239, down 0.81%, up from a session low of 1.5217 and off from a high of 1.5373.

The pair was likely to find support at 1.5028, the low from March 20, and resistance at 1.5385, Monday's high.

The IMF announced earlier that it trimmed its 2013 world economic growth forecast to 3.3%, down from a January projection of 3.5%, while the multilateral lending institution's 2014 growth forecast fell to 4.0% from 4.1%.

The news sent investors seeking safety in liquid greenback positions as did softer-than-expected U.K. jobs data.

Official data showed the U.K. unemployment rate unexpectedly rose to 7.9% in March from 7.8% in February.

Analysts were expecting the unemployment rate to remain unchanged.

Average U.K. earnings rose by 0.8% year-on-year in the three months to February, below expectations for a 1.2% increase.

The number of people seeking unemployment benefits fell by 7,000 in March compared to expectations for an increase of 500.

Meanwhile, the minutes of the Bank of England's April meeting showed that policymakers remained divided over the need for further easing.

The pound, meanwhile, was up against the euro and down against the yen, with EUR/GBP trading down 0.30% at 0.8550 and GBP/JPY down 0.22% at 149.53.

On Thursday, the U.S. is to release the weekly government report on initial jobless claims as well as data on manufacturing activity in Philadelphia.

The U.K. is to publish official data on retail sales. - offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.
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This article appears in: Investing , Forex and Currencies

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