Investing.com - The pound fell to nearly two-month lows against
the U.S. dollar on Friday, as the release of downbeat trade balance
data from the U.K. weighed on demand for sterling, while
geopolitical concerns continued to fuel safe-haven demand.
GBP/USD hit 1.6797 during European morning trade, the pair's
lowest since June 12; the pair subsequently consolidated at 1.6813,
edging down 0.11%.
Cable was likely to find support at 1.6790, the low of June 12
and resistance at 1.6884, the high of August 6.
Official data earlier showed that the U.K. trade deficit widened
to £9.41 billion in June, from £9.15 billion in May, whose figure
was revised from a previously estimated £9.20 billion. Analysts had
expected the trade deficit to narrow to £8.80 billion in June.
Meanwhile, investors remained cautious after U.S. President
Barack Obama on Thursday authorized air strikes in Iraq to put an
end to an onslaught by Islamic militants and begun military
air-drops of humanitarian supplies to besieged religious minorities
to prevent a "potential act of genocide".
Separately, Moscow banned imports of most food from the West in
retaliation against sanctions against it over Ukraine.
Visiting Kiev this week, NATO's secretary general says that
Moscow has massed troops on the country's border with Ukraine in
preparation for a possible ground invasion.
Sterling was lower against the euro, with EUR/GBP rising 0.31%
The single currency regained some support after European Central
Bank President Mario Draghi on Thursday said the bank still expects
a "moderate" and "uneven" economic recovery in the euro area and
acknowledged that there has been a slowing down in growth
Mr. Draghi also said that interest rates will remain at present
levels "for an extended period of time" and reiterated that the
bank was still committed to using unconventional measures if the
offers an extensive set of professional tools for the financial
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