Investing.com - The pound slipped lower against the U.S. dollar
on Thursday, after data showed that the U.K. economy expanded in
line with expectations in the last quarter, while uncertainty over
the Federal Reserve's next policy moves continued to weigh.
GBP/USD hit 1.6036 during European morning trade, the session low;
the pair subsequently consolidated at 1.6039, shedding 0.26%.
Cable was likely to find support at 1.5893, the low of September 18
and resistance at 1.6146, the high of September 19.
Official data showed that U.K. gross domestic product expanded by
0.7% in the second quarter, in line with market expectations.
On a yearly basis, U.K. GDP rose 1.3% in the three months to June,
compared to expectations for a 1.5% increase.
A separate report showed that the U.K. current account deficit
narrowed less-than-expected in the last quarter, improving to GBP13
billion from a deficit of GBP21.8 billion in the three months to
Analysts had expected the current account deficit to narrow to
GBP12 billion in the second quarter.
Meanwhile, investors were eyeing the final reading of U.S. second
quarter GDP due later in the day, after a recent string of economic
reports underlined concerns over the outlook for the U.S. economic
Stronger-than-expected GDP data would likely fuel speculation that
the Fed could announce a stimulus reduction before the year end.
Last week, the Fed said it wanted to see more evidence of a
sustained economic recovery before it reduced stimulus.
Sterling was also lower against the euro with EUR/GBP adding 0.11%,
to hit 0.8420.
Later in the day, the U.S. was to release the weekly report on
initial jobless claims, as well as final data on second quarter
growth and private sector data on pending home sales.
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