Forex - GBP/USD lower, but remains supported

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Investing.com - The pound was lower against the U.S. dollar on Friday, but remained supported as Wednesday's comments by Federal Reserve Chairman Ben Bernanke continued to weigh on the greenback.

GBP/USD hit 1.5124 during European morning trade, the session low; the pair subsequently consolidated at 1.5138, sliding 0.29%.

Cable was likely to find support at 1.5062, Thursday's low and resistance at 1.5283, the high of July 4.

Demand for the greenback remained under pressure after Bernanke on Wednesday said the Fed will continue to maintain accommodative monetary policy for the foreseeable future, citing low levels of inflation and the high unemployment rate.

Bernanke said the bank will not raise interest rates until the U.S. unemployment rate hits 6.5%.

The comments came after the minutes of the central bank's June policy meeting showed that Fed policymakers remain divided over when to begin tapering its USD85 billion-a-month asset purchase program.

Sterling was fractionally higher against the euro with EUR/GBP easing 0.08%, to hit 0.8618.

Also Friday, official data showed that industrial production in the euro zone fell 0.3% in May, exceeding expectations for a 0.2% downtick, after a 0.5% increase the previous month.

Later in the day, the U.S. was to produce official data on producer price inflation and preliminary data from the University of Michigan on consumer sentiment.


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This article appears in: Investing , Forex and Currencies

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